Shares of Dentsu Soken surged 5.5% to 2,890 yen on Friday after the company received a formal tender offer from Itochu Corp to acquire the IT services firm for approximately 250 billion yen ($1.56 billion).
The offer price of 2,880 yen per share, which Itochu plans to pay, anchored the stock near its new 52-week high of 2,930 yen. Dentsu Soken’s board voted on August 28 to endorse the proposal and recommended shareholders tender their shares. The deal aims to resolve Dentsu Group’s parent-subsidiary dual-listing structure, a process that involved a competitive bidding process over the summer.
Itochu’s bid prevailed over a rival proposal from Fujitsu, according to people familiar with the matter. The acquisition will expand Itochu’s information-technology segment, the company said. Dentsu Group currently holds a 61.8% stake in Dentsu Soken.
The broader market showed modest gains, with the Nikkei 225 up 0.5% and Dentsu Inc shares rising 1.5%. The transaction remains subject to shareholder approval and regulatory clearances.
