Martin Sorrell is wasting no time.
The former CEO of advertising giant WPP PLC (WPPGF) is already back in business, just six weeks after being forced out of the firm he built into the world’s biggest advertising group.
Sorrell reportedly intends to lead Derriston Capital, a listed shell company, as its executive chairman. He plans to use the company as a means to build a new marketing services group, reports Sky News.
Sorrell will invest £40 million ($53 million) of his own money in the venture, gaining an additional £11 million ($14.5 million) in commitments from investors who will become shareholders. According to The Wall Street Journal, he has secured “non-binding letters of support” from investors who are willing “in principle” to inject an additional £150 million ($199 million) for acquisitions.
The WSJ explains that the deal will be a reverse takeover, in which Derriston will acquire S4 Capital, a “new entity established by Mr. Sorrell to launch his new venture.” Derriston will then change its name to S4 Capital. The company has reportedly already begun preliminary discussions with a number of communication services business for possible acquisition.
“S4 Capital is a company that aims to build a multi-national communication services business focused on growth,” said Sorrell, the Guardian reports. “There are significant opportunities for development in technology, data and content.”
The move comes as a surprise to some, as it follows so closely after Sorrell’s abrupt departure from WPP. Sorrell was investigated for an allegation of misconduct—specifically, financial impropriety regarding the use of company funds. The results of the investigation have not been disclosed.