The Indian shareholders of Lintas India have agreed to sell their 51 per cent stake in the advertising agency to the Interpublic Group, which holds the balance 49 per cent.

Prem Mehta, CMD, Lintas India said both parties had reached a mutual agreement and the case was now awaiting the approval of the Foreign Investment Promotion Board.

The 51 per cent stake in Lintas is held by 12 employee welfare trusts, which also have four members on the company's  board. IPG, the international partner, also has four members on the board of the company.

Mehta said once the deal went through, there would be a change in the board representation. "However, the management or agency structure will not change," he said.

He added that while there were no brokers for the deal, both parties had a consulting firm advising them. The Indian shareholders were advised by DSP Merrill Lynch and IPG by Ambit Corporate Finance.

Pranesh Misra, president and COO, Lintas India, said the biggest change would be seen in the below-the-line space (as in mailers, posters, etc), where IPG had a number of specialised units.