Trading house Itochu has decided to launch a tender offer to take Dentsu Soken private in a deal that would end its parent-subsidiary listing structure with Dentsu Group.<\/p>\n
Itochu will acquire almost 75 million Dentsu Soken shares at \u00a52,880 each, valuing the deal at roughly \u00a5215.2 billion ($1.3 billion), according to a statement on Monday. The tender offer is set to begin around early November and be completed around early December. It will be conducted via a vehicle that is 80% owned by Itochu and 20% owned by its subsidiary, IFP.<\/p>\n
Dentsu Soken\u2019s parent, Dentsu Group, will not tender its shares and will collaborate with Itochu in managing the business after the acquisition. Dentsu Group currently holds a roughly 62% stake in Dentsu Soken, which offers IT services and consulting.<\/p>\n
If the tender offer succeeds, it will be the latest in a string of deals involving Japan\u2019s so-called parent-child listings, whereby both a parent company and its subsidiary are listed. Such companies have become targets of activist investors in recent years as the setup is seen as a poor use of capital. Activist Oasis Management holds a 5% stake in Dentsu Soken, according to Bloomberg-compiled data.<\/p>\n
As part of the planned acquisition, Dentsu Soken will enter into a business alliance agreement with Itochu Techno-Solutions to collaborate on IT infrastructure in light of rising demand for AI implementation, according to Monday\u2019s release.<\/p>\n
Dentsu Soken\u2019s shares fell as much as 2.2% on Monday morning and were trading at \u00a52,855 as of 11:00 a.m. in Tokyo. Itochu shares fell as much as 1% while Dentsu Group fluctuated between gains and losses.<\/p>\n","protected":false},"excerpt":{"rendered":"Trading house Itochu has decided to launch a tender offer to take Dentsu Soken private in a deal…\n","protected":false},"author":2,"featured_media":82875,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[22229,52840,8493,8],"class_list":["post-82874","post","type-post","status-publish","format-standard","has-post-thumbnail","category-japan","tag-dentsu","tag-dentsu-soken","tag-itochu","tag-japan"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/82874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/comments?post=82874"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/82874\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media\/82875"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media?parent=82874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/categories?post=82874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/tags?post=82874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}