Itochu to Take Dentsu Soken Private in $1.3 Billion Deal

Itochu Corp will launch a tender offer to take Dentsu Soken Inc private in a deal valued at approximately ¥215.2 billion, or $1.3 billion. The Japanese trading house plans to acquire nearly 75 million shares at ¥2,880 per share, with the tender process scheduled to run from early November to early December.

The acquisition will be executed through a vehicle owned 80% by Itochu and 20% by its subsidiary, IFP Inc. Dentsu Group Inc, which currently holds a 62% stake in Dentsu Soken, will not tender its shares but will collaborate with Itochu on business management moving forward.

This move eliminates a parent-child listing structure that has drawn criticism from activist investors, including Oasis Management Co., which holds a 5% stake in Dentsu Soken. As part of the transition, Dentsu Soken will enter a business alliance with Itochu Techno-Solutions to address growing demand for IT infrastructure and AI implementation.