Ex-Exec Suspected of Insider Trading on Asatsu-DK Shares

October 26, 2018

Tokyo- The Securities and Exchange Surveillance Commission has raided locations linked to a former Asatsu-DK Inc. executive over possible inside trading on shares of the Japanese advertising agency, informed sources said Friday.

The former executive is suspected of violating the Financial Instruments and Exchange Act by being involved in trading in Asatsu-DK shares before information about U.S. investment fund Bain Capital's tender offer became public, the sources said.

Asatsu-DK acknowledged that it has been raided. "We will fully cooperate" with the investigation, it said in a statement.

The tender offer for the advertising agency was announced on Oct. 2 last year. The price for the bid was set at 3,660 yen per share.

In December, Asatsu-DK said that Bain Capital had succeeded in the bid and acquired a stake of some 87 pct in the Japanese company. Jiji Press