Japanese advertising company Dentsu Inc today said it has bought out its Indian partner -- Mogae Consultants -- from three joint-venture full-service advertising agencies for an undisclosed sum.
Dentsu has purchased the respective 26 per cent equity stakes held by Mogae Consultants, led by President Sandeep Goyal, in Dentsu Communications, Dentsu Marcom and Dentsu Creative Impact, the company said in a statement.
"By making these three companies wholly-owned Dentsu subsidiaries in the rapidly developing and increasingly important Indian market, we aim to enhance our infrastructure to provide the best integrated solutions to our clients in all the business domains," Dentsu Inc, Executive Officer in charge of global business development Yuzuru Kato said.
With this move, Dentsu will be able to expand its business domain from advertising to other areas such as sports and digital-related services, it added.
Since the establishment of Dentsu Communications and Dentsu Marcom in 2003 and Dentsu Creative Impact in 2005, Dentsu has been steadily expanding its business in India through the three agencies.
In accordance with the terms of the transaction, Sandeep Goyal, the incumbent Chairman of the Dentsu India Group, will resign his position, Dentsu said in a statement.
He will also resign from the boards of the three advertising agencies, the statement added.
Dentsu's clients include Panasonic, Indiabulls, ICICI, Wipro, Acer, Toyota, Honda, Suzuki, Canon among others.
