WPP proposes to raise its stake in ADK to 33%

After opposing the Bain Capital’s bid to buy majority stake in its Japanese partner ADK, WPP has said it would welcome the opportunity to engage constructively with the Board of ADK if the Tender Offer by Bain fails and would be prepared to raise its stake in ADK to 33 per cent from 25 per cent.

“With the approval of the Board and other shareowners we would also be prepared, as requested by some shareowners, to increase our shareholding in ADK to 33 per cent,” said WPP in a statement.

WPP owns 10,331,100 ADK shares, representing 24.96% of the issued share capital of ADK.

ADK is seeking to walk out of 19-year old partnership with WPP and has supported the Bain Capital’s tender to buy a minimum of 50.1% shares in the company against a $1.3bn tender offer.

Opposing the move, WPP took legal action, seeking arbitration and a preliminary injunction to uphold its stance that ADK's planned termination of their business alliance was invalid.

Reiterating its stand, WPP said, “WPP does not intend to accept the Tender Offer launched by Bain on 2 October 2017 as we believe Bain has significantly undervalued ADK, its assets and future opportunities – as we and other shareowners have publicly stated previously.”

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