David Blecken
Nov 16, 2017

WPP says it will invest more in ADK if Bain's bid fails

As the tender offer nears its expiry date, WPP is working harder to get fellow ADK shareholders on its side.

Photo: AFP
Photo: AFP

WPP has said it is prepared to increase its shareholding in ADK if Bain Capital’s tender offer falls through.

WPP, which owns a stake of nearly 25% in ADK, reiterated in a statement that it rejects Bain Capital’s bid to buy ADK because the bid undervalues the company, “its assets and future opportunities”. The tender offer expires on 21 November.

See all our coverage of the ADK-WPP fight over Bain's bid

Despite having been highly critical of ADK’s business strategy and leadership, WPP said it wanted to “clarify our commitment” to the Japanese company. It said it “would welcome the opportunity to engage constructively with the board of ADK if the tender offer fails to help ensure ADK has the talent and focus on digital and animation” necessary to increase its value.

WPP said subject to approval by other relevant parties, it would increase its stake in ADK to 33%. The suggestion of working to strengthen ADK, which WPP has not raised in its previous statements on the takeover bid, can be seen as a further effort to persuade ADK shareholders to unite against Bain. The deal will collapse if fewer than 50.1% of shareholders agree to sell their holdings.

In its nine-month financial results issued earlier this week, ADK reiterated its intention to sever ties with WPP. The two companies have long had a fraught relationship, which both have called unproductive. However, WPP agencies rely on the partnership with ADK to buy media in Japan.

Should Bain’s bid fail, a return to positive relations looks unlikely unless WPP is able to effect a change in ADK’s management. Shinichi Ueno, ADK’s president and CEO, has said publicly that the alliance is effectively at an end regardless of whether or not Bain’s deal is successful. WPP attempted to oust Ueno in March, but nearly 60% of shareholders voted to re-elect him. 

Source:
Campaign Japan

Related Articles

Just Published

4 hours ago

Sanofi elevates Audrey Duval Derveloy to global ...

Duval Derveloy will retain her role as president of Sanofi France as part of the new title.

9 hours ago

Glass Lions Grand Prix awarded to body lotion for ...

This is the first time a Singaporean agency has been awarded a Grand Prix at the Cannes Lions.

9 hours ago

Cannes daily global podcast episode 5: Campaign ...

Campaign's editors and journalists from around the world are hosting a daily podcast during the five-day Lions festival. In episode five, we discuss the big award wins from the fourth night.

10 hours ago

Publicis Conseil, Ogilvy and WPP win agency, ...

WPP takes back holding company award from Omnicom.