Bain Capital has won its bid for Japan’s third largest agency ADK, which it was always going to do once WPP, a 25 per cent shareholder, had changed tack and decided to accept the offer. WPP originally opposed the bid.
The deal values ADK at about $1.3bn. 87 per cent of shareholders accepted the bid.
Now we wait to see what, if anything, remains for WPP which has talked of maintaining a presence in ADK.
Bain Capital Private Equity’s Yuji Sugimoto says: “Today’s successful tender offer marks an important step in the right direction for ADK as we move closer to privatizing the business in order to better secure its future in a fast-changing market. This is also a very positive outcome for ADK’s shareholders, who have been able to realize attractive value through our fully priced offer.
“We look forward to working closely with ADK’s management over the coming months to accelerate its transformation efforts while we continue to work towards the end goal of privatizing the business so it can realize its full potential more quickly.”
No mention of WPP there. Japan is a strategically important market for WPP although its relationship with ADK has not been smooth. With Dentsu by far the most dominant force and Hakuhodo up there too there aren’t many meaningful options in the Japanese market.