Dentsu to Sell Shares to Pay Aegis Deal Debt

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Japanese advertising company, Dentsu Inc. is looking to raise Y120.1 billion in a public share sale. The net proceed from the sale is intended to be used as payment for Aegis Group Plc., a company that Dentsu acquired and completed last March.

The company offered as much as 29 million shares it owns. It also offered 8 million new shares to Japanese and overseas investors. This was according to a statement from Dentsu said yesterday. Dentsu owed Y200 billion short term debt from the deal with Aegis.

Dentsu paid GBP3.16 billion for Aegis as Japan's largest agency competes with global firms. The said firms included WPP Plc and Omnicom Group Inc. Dentsu tapped different equities to fund the deal with Aegis after the Topix index paced for its best result since 2005. The deal also reduced the company's reliance on the domestic market and added the biggest independent buyer of advertising space.

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