WPP is close to changing its mind about selling ADK with a deal expected today
Reports suggest that WPP has agreed to sell its stake in Asatsu-DK Inc (ADK) to Bain Capital for 3,660 yen (USD $32.51) a share.
WPP has agreed to sell its stake in Asatsu-DK Inc (ADK).
However, a spokesperson for Bain Capital, who is managing the transaction confirmed to the Drum that a deal is expected later today but had not yet been signed.
The ongoing saga, which saw WPP fight back against claims it had slowed the agency's digital growth and repeatedly deny a sale due to it undervaluing shares, looks set to come to an end at some stage today either way.
According to Reuters, WPP did not explain why it was finally accepting Bain’s offer after the advertising holding company released two statements that first accused ADK of dodging the stock purchase agreement and ignoring shareholder advice in the deal with Bain, before its second statement said it rejected the tender offer launched by Bain because it significantly undervalued ADK, its assets and future opportunities.
The Drum has reached out to both Bain and WPP for further comments on this issue.