Print Published 30th Oct 2018, 15:35

Dentsu paying high price to advance its digital capability

Dentsu appears to be offering a very high price to acquire a near 21% stake in the publicly listed Japanese internet marketing business Septini Holdings.

In a ¥260 per share tender offer, Dentsu is valuing Septini at more than £230 million, or more than twice its annual revenue in the year to 30 September 2018.  The valuation is also equivalent to a multiple of 34.1 times Septini’s reported operating profit before interest and tax (EBITA) or 39.3 times its post-tax profit for that year.

The tender offer was priced at a premium of 93% over Septini’s share price prior to the announcement.