Bain Capital says it may withdraw tender offer proposal for Fuji Soft (updated)
11/02/2025 02:04
(Adds background and context in paragraphs 3-4, 6-7)
TOKYO, Feb 11 (Reuters) - U.S. private equity firm Bain
Capital said it may withdraw its tender offer proposal for
Japanese IT firm Fuji Soft 9749.T , after rival suitor KKR
KKR.N raised its offer above Bain's in a protracted bidding
war.
Bain Capital "is carefully considering its future policy,
including the option of withdrawing" the proposal, it said in a
statement on Monday.
Bain's possible concession would bring to an end months of
intense competition with its U.S. rival to take control of Fuji
Soft.
Bain had persevered in the bidding war even with rejection
from the company's board - a rare step in Japan - citing "strong
concerns and distrust" over Fuji Soft's response and arguing the
rejection harmed the interests of minority shareholders.
However, KKR raised its offer price last week to 9,850 yen
($64.88) per share from 9,451 yen per share, above Bain's most
recent offer of 9,600 yen per share in December.
Bain had planned to launch its tender offer in early
February.
The saga underscores an increasingly competitive dealmaking
environment in Japan, as global investment firms target Japanese
companies that are seen as having underutilised assets or
ineffective corporate governance.
Fuji Soft shares ended down 0.2% at 9,960 yen on Monday. The
Tokyo stock market is closed on Tuesday due to a public holiday.
KKR currently has a 33.97% stake in Fuji Soft following the
first stage of a two-part bid in which two activist investors -
3D Investment Partners and Farallon Capital - agreed to tender
their shares to KKR.
Bain, which is supported by Fuji Soft's founding family, has
yet to launch a tender offer.
($1 = 151.8200 yen)
(Reporting by Kiyoshi Takenaka in Tokyo and Kane Wu in Hong
Kong; Editing by Jamie Freed and Muralikumar Anantharaman)
((kiyoshi.takenaka@thomsonreuters.com; +81 3 4563 2788;))