Hello, everyone,
Will Itochu be the new AI pick? I’m staying invested here.
Itochu plans to take Dentsu Soken private in a deal with the Dentsu Group and build around ten Japanese data centers by 2030.
Key Points at a Glance
- Takeover bid at 2,880 yen per share
- Transaction volume of approximately 250 billion yen
- About ten data centers planned by 2030
- Record profits and share buybacks support the stock price
Itochu Corporation is driving the group’s strategic realignment with massive investments in digital infrastructure and system solutions. Last Friday, the Japanese trading house announced a public tender offer for Dentsu Soken Inc. to delist the company from the stock exchange in collaboration with the Dentsu Group.
At the same time, the group plans a large-scale entry into the data center market to capitalize on rising demand from global technology giants in Japan.
Takeover Bid for Dentsu Soken and Entry into the Data Center Market
As part of the plan announced on Friday, Itochu intends to acquire a 38.2% stake in Dentsu Soken at a price of 2,880 yen per share. The estimated transaction value amounts to approximately 250 billion yen, which is equivalent to about 1.6 billion U.S. dollars.
The Dentsu Group, which already holds a 61.8% stake, will remain on board as a partner. According to media reports by the Nikkei, Itochu prevailed over competitors such as Fujitsu in a previous bidding process. Dentsu Soken’s board of directors has already signaled its support for the offer and recommended that shareholders accept it.
In addition to this acquisition, Itochu is investing heavily in physical digital infrastructure. According to Nikkei Asia, the company plans to build about ten data centers in Japan by 2030.
The investment volume for this is expected to amount to several hundred billion yen. These locations are intended to be leased to major U.S. technology companies. To optimize site development, Itochu is also exploring a collaboration with its partner, JR East.
Record profits and share buybacks are supporting the stock price
These ambitious expansion plans are built on a solid financial foundation. In early August, Itochu reported a consolidated net profit of 293.7 billion yen for the first quarter of fiscal year 2027 (April through June). This represents a 3% increase compared to the same period last year and marks a record high for a first quarter for the second consecutive year
These figures were accompanied by the announcement of a share buyback program totaling up to 300 billion yen, half of which is to be conducted via a public tender offer.
The news has recently been reflected in a positive trend on the stock market. Last Friday, the stock price rose by 0.6% and closed at €11.54. Over the past 30 days, the stock has thus posted a gain of 5.3%. The group’s market capitalization amounts to approximately €79.77 billion.
Expansion in Aviation and Focus on AI
In addition to its digital strategy, Itochu is expanding its presence in other sectors. In early August, the company announced that it would acquire a 50% stake in TC Skyward Aviation U.S., a subsidiary of Tokyo Century Corporation.
Through this move, Itochu secures access to the joint management of the Aviation Capital Group (ACG), one of the world’s leading companies in the aircraft leasing sector.
The acquisition cost for this stake amounts to approximately $1.95 billion. In addition, Itochu is supporting its partner’s financial position by subscribing to Tokyo Century bonds worth 10 billion yen.
Furthermore, the group is accelerating the use of artificial intelligence within the organization. To this end, the Global Tech Center (GTC) was established at the end of July to drive the AI transformation.
In this context, Itochu entered into a partnership with the Vietnamese company FPT Software to leverage its expertise in data utilization and AI for its own group units. In the media technology sector, Itochu also signed a memorandum of understanding with Nippon TV and Data One to explore collaborations in the “TV x Retail Media” segment.
Itochu Aktie: Plant zehn Rechenzentren
