Dentsu

Itochu has confirmed a privatization offer for Dentsu Soken, proposing ¥2,880 per share, about 5% above the previous day's close. Itochu intends to acquire the roughly 38.2% stake not owned by Dentsu, while Dentsu will retain a 61.8% stake and Dentsu Soken will be taken off the market. Itochu will commit about ¥250 billion (approximately $1.56 billion) to the transaction. Following the announcement, Dentsu’s shares rose 2.5% and Dentsu Soken’s stock gained more than 5%. » More on de.investing.com

The Dentsu stock fell 8.2% after it emerged that the half‑year result was largely driven by a one‑off gain from the sale of the Dentsu Ginza building and that earnings quality disappointed. All three international segments reported negative organic growth, adjusted operating profit improved only slightly, and the outlook expects a decline of about 3.6% year‑on‑year. In addition, the sale process for the international business appears to have failed after Apollo pulled out and Bain Capital is unlikely to proceed with a transaction, while a strong yen and interest‑rate fears are adding pressure to the market. » More on de.investing.com

Dentsu Group intends to take Dentsu Soken off the market together with Fujitsu and an unnamed trading house. Dentsu holds around 61.8% of the subsidiary; the partners are reported to plan to invest about 200 billion yen to acquire the remaining 38.2%. » More on de.investing.com