Itochu Corp has decided to launch a tender offer to take Dentsu Soken Inc private in a deal valued at roughly ¥215.2 billion ($1.3 billion). Itochu will acquire almost 75 million Dentsu Soken shares at ¥2,880 each. The tender offer is set to begin around early November and be completed around early December.

It will be conducted via a vehicle that is 80% owned by Itochu and 20% owned by its subsidiary, IFP Inc. Dentsu Group, which currently holds a roughly 62% stake in Dentsu Soken, will not tender its shares and will collaborate with Itochu in managing the business after the acquisition. Dentsu Soken offers IT services and consulting. If the tender offer succeeds, it will be the latest in a string of deals involving Japan’s so-called parent-child listings, which have become targets of activist investors in recent years.

Activist Oasis Management Co. holds a 5% stake in Dentsu Soken. As part of the planned acquisition, Dentsu Soken will enter into a business alliance agreement with Itochu Techno-Solutions to collaborate on IT infrastructure in light of rising demand for AI implementation. Dentsu Soken’s shares fell as much as 2.2% on Monday morning and were trading at ¥2,855 as of 11:00 a.m. in Tokyo.

Itochu shares fell as much as 1% while Dentsu Group fluctuated between gains and losses.