Advertising giant WPP PLC (WPP.L) on Tuesday said it has agreed to sell its stake in Japanese partner Asatsu-DK Inc (ADK) (9747.T) to Bain Capital LLC for 3,660 yen ($32.53) a share, heralding the end of a row over the $1.35 billion buyout offer.
ADK had sought to end a two-decade-old business alliance with WPP, asking it to sell its shares to the U.S. private equity firm.
WPP and other large shareholders had sought a higher offer, but the agreed price was unchanged from the initial offer.
ADK shares jumped more 5 percent to 3,660 yen in Tuesday afternoon trade, as investors bet on the likelihood of Bain’s takeover bid succeeding.
Apart from WPP, London-based fund manager Silchester International Investors LLP and Hong Kong-based activist hedge fund Oasis Management Co Ltd had also said Bain’s offer was too low.
WPP did not comment on why it had changed its mind, whereas an ADK spokeswoman declined to comment. Neither Silchester nor Oasis could be reached for comment on Tuesday.
WPP and Asatsu-DK formed an alliance in 1998 to set up joint ventures and cultivate clients together, exchanging equity stakes. But the Japanese firm has said synergies from the tie-up failed to materialize.
Source: Reuters.com