KKR Completes First Stage of Tender Offer, Taking 35% of Fuji Soft, and Blocking Bain Capital’s Proposal
Private equity firm KKR has secured 35% of the company after making the first round of its tender offer to gain hold of Japanese software firm Fuji Soft. That will make the private equity firm well in a position to dominate control over Fuji Soft and prohibit any kind of takeover approach from competitors.
KKR bought shares of Fuji Soft at 8,800 yen for the first round of the tender offer. The acquisition of shares now gives KKR the share to prevent Bain Capital from moving forward with its privatization bid. Bain had proposed a higher price of 9,450 yen per share in October but without the approval of the management of Fuji Soft, the attempt of Bain to take the company private is on hold.
Another entity, which also happens to be a 3D Investment Partners, Farallon Capital, share the stock holding of Fuji Soft accounting for 32.7%. The duo would sell them to KKR at an amount of 8,800 yen.
Bain in turn has not had the go ahead from management as yet but intends to do so raise the bid if needed to acquire the share. Oscillating at the respective bids since August, with Wednesday's close being put at 9,200 yen.
The second tender of KKR will be moving ahead in mid-November with the same offer price of 8,800 yen per share.