WPP agrees to sell its stake in ADK

Advertising giant WPP has agreed to accept Bain Capital’s offer for its stake in Japan’s Asatsu-DK Inc (ADK) and signed agreement yesterday to sell its 24.96% stake in ADK.

Last month, WPP opposed the U.S. private equity firm’s move to buy Japan’s third-largest advertising agency for $1.35 billion. On Tuesday, it agreed to sell its ADK shares for 3,660 yen ($32.53) each, the same price it rejected last month.

WPP had last week proposed to raise its stake in ADK to 33%.

Japan is the third largest ad market in the world and according to WPP’s media investment arm GroupM, it will be the third largest contributor to global growth in advertising spend in 2017. The industry is largely controlled by Dentsu and Hakuhodo DY Holdings, with ADK a distant third.

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