Japanese advertising and marketing giant Hakuhodo DY Holdings Inc. plans to purchase major Taiwanese ad agency Growww Media Co. in a bid to bolster its business in the territory.
Hakuhodo DY will inject a maximum of 1.85 billion New Taiwan dollars (¥6.7 billion; $60 million) through its subsidiary to acquire a 50 percent to 78.81 percent stake in the company between Wednesday and April 15. Then the firm will offer cash consideration for the remaining stake to wholly own the Taiwanese firm, according to a Hakuhodo DY statement released Tuesday.
To fund the takeover, the Tokyo-based ad agency will pump around NT$7.5 billion in capital into its three existing subsidiaries in Taiwan in early April.
Hakuhodo DY wants to combine its marketing solutions with Growww Media's strong customer base in Taiwan to lead the local market, the statement said.
The company also hopes the move will allow Hakuhodo DY to make Taiwan, where the ad agency offers marketing support for Japanese companies, the base for its business expansion in the Asian region, according to the company.