Itochu Bids to Take Dentsu Soken Private in Joint Deal with Dentsu Group

MT Newswires Live
08/28

Japanese trading house Itochu (TYO:8001) proposed to acquire a significant stake in technology services and consulting company Dentsu Soken (TYO:4812) at 2,880 yen per share, the Dentsu Group (TYO:4324) unit said in a Friday disclosure to the Tokyo exchange.

Shares in Dentsu Soken jumped 6% after the midday break on Friday following its confirmation of support of Itochu's offer that came after Nikkei first reported on the offer.

The offer comes as Dentsu Soken has faced criticism over its parent-subsidiary dual-listing setup, according to Nikkei.

Itochu reportedly plans to purchase a 38.2% stake in Dentsu Soken for about 250 billion yen. Dentsu Group, which holds 61.8% of Dentsu Soken, will delist the IT services and consulting unit post-transaction, according to Nikkei.

Itochu made the offer through its subsidiary to acquire Dentsu Soken shares not already owned by Dentsu Group.

Both companies will discuss the matter during board meetings on Friday and will announce the offer formally once approved, they said in separate releases.

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