Itochu to Proceed With Privatization Offer for Dentsu Soken
Itochu (TYO:8001) has decided to proceed with a tender offer that will take consulting and solution development company Dentsu Soken (TYO:4812) private, according to Tokyo bourse filings on Monday.Itochu determined and agreed to the terms of the tender offer on Friday, but reaffirmed its position after confirming the interpretation of some provisions in the agreements with Dentsu Soken.The offer's purchase price amounts to 2,880 yen per share for about 9.3 million shares.VIC, an entity formed by Itochu, will acquire a 38.22% stake in Dentsu Soken, with the remaining shares to be retained by Dentsu Group (TYO:4324).The tender offer will begin in early November, subject to approval from competition regulators in Japan, China and the European Union.Following the tender offer, Dentsu Soken will delist from the Tokyo Stock Exchange and become a joint venture between Dentsu Group and VIC.Dentsu Soken extended its support for the offer and recommended that shareholders tender their shares.Dentsu Soken and Itochu Techno-Solutions will also sign a business alliance agreement, while Dentsu Inc. has entered into business alliance deals with Itochu Group companies Data One and Gate One.Shares of Dentsu Soken fell 2% in recent trade
