A former employee of ADK is under investigation for insider trading linked to Bain Capital’s acquisition bid last year, according to a report by a Japanese publication.
The Mainichi newspaper reported that the executive is alleged to have leaked information on Bain’s bid to an acquaintance before the deal became public. The acquaintance reportedly used the information to profit from selling ADK shares.
The report did not include names.
The move would be in breach of the Financial Instruments and Exchange Act. ADK did not immediately respond to a request for comment on the proceedings.
ADK completed its sale to Bain Capital in early December last year. In March, the company delisted from the Tokyo Stock Exchange, and named Bain Capital MD David Gross-Loh as a director.
ADK is currently in the process of restructuring, which is understood to have resulted in a number of staff departures at the mid- to senior level. ADK and Bain have yet to define a clear strategy to transform Japan’s third-largest advertising agency, but have talked about the importance of focusing on digital and of developing ADK’s entertainment business.
.jpg&h=334&w=500&q=100&v=20170226&c=1)
.jpg&h=334&w=500&q=100&v=20170226&c=1)
.jpg&h=268&w=401&q=100&v=20170226&c=1)
