TOKYO -- British media group WPP, the top shareholder of Japanese advertising agency Asatsu-DK, has decided to sell its stake to U.S. private equity company Bain Capital, The Nikkei learned on Tuesday.
WPP, which owns a controlling interest of 25%, had previously indicated it would reject Bain's offer but changed its mind.
Bain is expected to ask the Kanto Local Finance Bureau to extend the deadline for the takeover bid, currently set for Tuesday, to Dec. 6. This will allow time for the two sides to finalize a deal.
After The Nikkei reported that WPP has agreed to a proposal from ADK management and Bain Capital, ADK shares in afternoon trading rose over 5% from Monday's closing price to recover the tender offer price of 3,660 yen. The initial report came during the Tokyo Stock Exchange's lunch break.