Three members of the quintet that founded M&C Saatchi nearly 30 years ago have placed a £1m bet on the revival of the advertising agency’s fortunes.

Sky News has learnt that David Kershaw, Bill Muirhead and Jeremy Sinclair, have collectively invested the sum in M&C’s London-listed stock.

It takes their combined stake to about 6% of the company, and comes weeks after it announced that Moray MacLennan, its veteran chief executive, would step down from the role.

Be the first to get Breaking News

Install the Sky News app for free

Zillah Byng-Thorne, the former boss of magazine publisher Future and chair of M&C Saatchi, will become executive chair when Mr MacLennan steps down on 30 September.

In a statement, Mr Kershaw said on behalf of the three participating co-founders: “We of course know there are superb businesses with great leaders in the group.

“Now with Zillah’s strategic focus and record of transformational change we are extremely confident that the company’s true performance and valuation will be realised.”

M&C was founded in 1995 by Messrs Kershaw, Muirhead and Sinclair along with the brothers Maurice (now Lord) Saatchi and his brother Charles.

Ex-Deliveroo execs secure Google AI funding for property search engine

HMV owner seeks £50m backing for Wilko rescue bid

What happens when you recycle your phone? Inside the UK’s biggest facility doing just that

It has been responsible for some of the ad industry’s most prominent campaigns, and has worked for the government, the Conservative Party and companies including Barclays, Heineken and British Airways.

M&C’s businesses extend well beyond traditional advertising, encompassing sports sponsorship broking and activation, digital and social media marketing and talent management.

Read more in business:
Barclays line up Gulf firepower for fresh raid on Telegraph newspapers
Energy price cap falls – but Ofgem boss says it would be ‘helpful’ if govt brings back support for families
Heineken sells Russian business for just 86p – at a loss of £256m

In June, it warned of declining revenues in 2023 amid difficult trading conditions in a slowing economy.

The search for Mr MacLennan’s successor comes after a turbulent period for M&C, which was last year at the centre of a bidding war involving both Ms Murria and Next Fifteen Communications, another London-listed company.

On Friday, shares in M&C closed at 122p, giving it a market capitalisation of around £150m.

Related posts:

John Laing and Macquarie team up for £200m retirement venture ASOS profits leap 275% as pandemic restrictions drive fashion sales online Soho House to become Membership Collective Group in $4bn listing Lyst fashions route to IPO with $85m funding round Petrofac in £180m cash call to fund SFO bribery settlement Turkey in danger of ‘inflationary doom loop’ as Erdogan defies laws of economics Fast food chain replacing McDonald’s in Russia unveils new logo Britain has its first hedge fund PM and that matters to the markets | Ed Conway analysis Homes selling for 3% below asking prices as market deteriorates, property website warns BT workers and union reach agreement after strikes Telegraph parent hires Goldman to turn page with new owners Former Fed chair Bernanke to lead review of Bank of England forecasts