NEW YORK, June 26, 2020 /PRNewswire/ -- MDC Partners Inc. (the "Company") (NASDAQ:MDCA) today announced that its Board of Directors has formed a special committee of independent directors to review the preliminary, non-binding proposal made by Stagwell Media LP ("Stagwell") with respect to a potential business combination between the Company and Stagwell (the "Potential Transaction"). Mark Penn, Chairman and Chief Executive Officer of the Company, is also the managing partner of Stagwell. The special committee has not reached any conclusion as to the advisability or feasibility of a Potential Transaction.
The special committee intends to retain legal counsel and an independent financial advisor to assist in its review and evaluation of the Potential Transaction.
"The special committee will act in the best interests of the Company and our shareholders and will evaluate the proposed transaction in partnership with our independent advisors," said Irwin Simon, Lead Independent Director of the Company. "We are committed to maximizing shareholder value and, if it makes sense to proceed, we will do so in a thoughtful and diligent manner."
The special committee has the full power and authority of the Board of Directors to take any and all actions on behalf of the Board of Directors as it deems necessary in order to evaluate and negotiate a Potential Transaction, including any alternatives to any transaction which may be proposed by Stagwell, and the special committee has the full power and authority to reject any Potential Transaction.
No assurances can be given regarding the likelihood, terms and details of any proposal or Potential Transaction, that any proposal made by Stagwell regarding a Potential Transaction will be accepted by the special committee, that definitive documentation relating to any such Potential Transaction will be executed or that any Potential Transaction will be completed.