The board of Japan’s Fuji Soft (9749.T) is continuing to back the first stage of a 558.4 billion yen ($3.72 billion) buyout offer from KKR, despite receiving a higher counter-offer from Bain Capital. In August, Fuji Soft supported an 8,800 yen per share offer from KKR, while Bain Capital later proposed a competing offer of 9,450 yen per share. KKR subsequently introduced a two-stage process, allowing shareholders to participate in an initial or later tender, both priced at 8,800 yen per share.
Major shareholders 3D Investment Partners and Farallon Capital, who jointly hold a 32.7% stake in Fuji Soft, have agreed to participate in the first tender, which closes on October 21. Bain Capital last week confirmed its offer was binding, pending Fuji Soft’s approval, but the IT company has yet to make a final decision. Fuji Soft stated it would decide on Bain’s proposal and the second stage of KKR’s offer individually at the appropriate time.
A KKR representative said that their offer provides the best future for Fuji Soft due to the certainty of completing the privatization and KKR’s track record of enhancing value in Japanese companies. Bain Capital, which has also been active in Japan, has not commented yet. Fuji Soft’s founder, Hiroshi Nozawa, and his family, who collectively own 18.5% of the company, have publicly supported Bain’s bid.
Featured image courtesy of Pensions & Investments
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