Bain and WPP reach an understanding on ADK to put an end to protracted saga
Bain Capital has announced that it has reached an understanding with WPP to acquire Asatsu-DK (ADK), marking an end to a protracted saga that had dragged on for months.
Bain Capital has announced that it has reached an understanding with WPP to acquire Asatsu-DK (ADK).
The understanding sees WPP agreeing to tender its shares to Bain at the offer price of 3,660 yen (USD $32.51) per share, withdrawing the arbitration and injunction proceedings brought against ADK on November 1 and terminating its relationship with ADK with immediate effect if the tender offer succeeds and is settled.
If Bain is able to take ADK private, the investment firm will discuss with WPP a potential investment by the advertising giant as a non-controlling minority shareholder in a Bain investment vehicle that directly or indirectly owns the interests of ADK, with any future cooperation to be discuss in good faith by both parties.
“We are very pleased that WPP has shown its support for the privatization of ADK, and an orderly termination of the current alliance which exists between ADK and WPP upon the success of our offer,” said David Gross-Loh, managing director at Bain Capital Private Equity.
“We now hope ADK’s other shareholders will recognize the attractive valuation and liquidity opportunity presented in our fair and fully priced offer, and tender their shares.”
The news comes after differences between the businesses around the deal were played out very publicly, in which even as late as last week WPP said that it would not sell its shares. The deal was first leaked this morning but Bain capital confirmed the deal later in the day.
The Drum has asked WPP for comment but it declined.