Shares of Dentsu Soken saw a significant jump, closing up almost 15% at JPY 2,717 following media reports indicating a plan by its parent company, Dentsu Group, to take the IT firm private. The reported plan involves Dentsu Group collaborating with Fujitsu and a trading house, with some reports specifically naming Itochu, to acquire the remaining 38.2% stake in Dentsu Soken that is not already owned by the parent company. This acquisition is estimated to be approximately JPY 200 billion ($1.2 billion) to JPY 250 billion.
Dentsu Group currently holds about 61.8% of Dentsu Soken. The proposed deal would see Fujitsu and the unnamed trading house, which Japanese financial media like Nikkei have identified as Itochu Corporation, invest the roughly JPY 200 billion to purchase the shares held by outside investors. This move aims to delist Dentsu Soken from public trading.
The rally in Dentsu Soken's stock is also supported by its recent financial performance. In its latest quarter, the company reported year-over-year increases in both revenue and operating profit, driven by strong contributions from its Financial Solutions, Business Solutions, and Communication IT segments. Analysts noted that the stock had underperformed the Nikkei 225 over the past six months, making it susceptible to a rapid rebound on positive news. The broader Tokyo market, with the Nikkei 225 and Topix both slightly higher, provided a supportive backdrop for the stock's surge.
While the exact terms, timing, and completion of the transaction remain uncertain as they are based on media reports, the news has significantly impacted market participants. The next scheduled earnings release for Dentsu Soken is on August 5, 2026, limiting immediate company-confirmed financial updates to validate the strategic rationale behind the reported buyout.
