ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconIcon FacebookIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerIcon Opinion QuotePositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter

Bain's takeover bid for Asatsu-DK faces opposition from shareholders

Second-largest shareholder says offer price too low

TOKYO -- U.S. private-equity firm Bain Capital's takeover bid for Japanese advertising agency Asatsu-DK is facing opposition from its two biggest shareholders.

U.K. asset management company Silchester International Investors, the second largest shareholder of ADK, announced on Wednesday that it would oppose the proposed acquisition on the grounds that the current offer price is too low.

British media group WPP, the largest shareholder, is also against the takeover bid.

Bain had announced it would buy ADK shares for 3,660 yen ($32.46) per share, but Silchester has refused to accept, saying: "The current offer price substantially undervalues ADK, its assets, franchise and future opportunities."

Activist fund Silchester owns about 17% of ADK's outstanding shares while WPP owns a 25% stake.

The holders of more than 50.1% of the shares have to accept the offer to make the takeover bid work.

As of Tuesday, when it was reported that WPP would not accept, shareholders with a 42% stake were against the bid.



You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

Get unlimited access
NAR site on phone, device, tablet

{{sentenceStarter}} {{numberReadArticles}} free article{{numberReadArticles-plural}} this month

Stay ahead with our exclusives on Asia; the most dynamic market in the world.

Benefit from in-depth journalism from trusted experts within Asia itself.

Try 3 months for $9

Offer ends September 30th

Your trial period has expired

You need a subscription to...

See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

See all offers
NAR on print phone, device, and tablet media