LONDON--Japanese advertising giant Dentsu Inc. said Thursday it
has agreed to buy (4324.TO) U.K. media firm Aegis Group PLC
(AGS.LN) for 3.16 billion pounds ($4.91 billion) in cash.
Tokyo-based Dentsu said it will pay 240 pence for each Aegis
share, a premium of 48% on Wednesday's closing price of 162.2
pence.
The Japanese firm, founded in 1901, added that it has already
purchased or had irrevocable undertakings for around 30% of Aegis'
stock, mainly through French businessman Vincent Bollore, the
group's largest shareholder, who will receive GBP535 million for a
15% stake.
"Dentsu and Aegis will be the market leader in the Asia-Pacific
region, enjoying a strong presence across Europe and the fastest
growing agency network in the U.S.," said Dentsu President and
Chief Executive Tadashi Ishii. "We have huge ambitions for a truly
client-focused global communication network built in the digital
age."
Aegis had previously been considered a takeover target for
French marketing company Havas SA (HAV.FR), where Mr. Bollore is
also the largest shareholder. The U.K. firm sold its market
research arm Synovate to Ipsos SA (IPS.FR) last year for GBP525
million and has since posted strong profit gains.
Neither company commented on the likely make up of the combined
management structure.
"We at Aegis are delighted at the prospect of being able to play
a full part in helping Dentsu create a platform for global growth
and continued digital innovation," said Aegis Chief Executive Jerry
Buhlmann. "We have complementary geographic fits and aligned
visions and strategies."
Write to Peter Evans at peter.evans@dowjones.com