Japanese System Developer Dentsu Soken to Go Private
Tokyo, Aug. 28 (Jiji Press)--Japanese system developer Dentsu Soken Inc. said Friday that it plans to go private through a tender offer by a subsidiary of trading house Itochu Corp. The tender offer will start in early November at the earliest, contingent on approval from competition authorities in Japan and overseas. If the offer ends in success, Dentsu Soken will operate as a joint venture...
Tokyo, August 28 (Jiji Press) - Japanese technology firm Dentsu Soken Inc. announced on Friday their intention to transition to private ownership through a tender offer initiated by a subsidiary of the trading corporation Itochu Corp. The tender offer is set to commence in early November, pending approval from Japanese and international competition regulators.
A successful tender offer would result in Dentsu Soken functioning as a joint venture between the Itochu group and the Dentsu Group Inc. The acquisition price will be 2,880 yen per share, equivalent to a total sum of 215 billion yen. The Itochu subsidiary aims to take a 38.2% stake, encompassing all shares except the 61.8% currently owned by the Dentsu Group.
Dentsu Soken has endorsed the tender offer and advised shareholders to participate in the process. Meanwhile, the Dentsu Group is contemplating delisting the system unit to enhance the company's governance, as the current parent-subsidiary structure is viewed unfavorably by foreign institutional investors.
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