KKR extends tender period for Fuji Soft to November (updated)
21/10/2024 10:51
(Adds context and background throughout.)
By Anton Bridge
TOKYO, Oct 21 (Reuters) - U.S. investment firm KKR
KKR.N has extended by 10 working days the first stage of its
tender to take Japanese IT services firm Fuji Soft private, it
said in a filing on Monday.
The extension comes after Bain Capital made a rival proposal
to buy all the shares of Fuji Soft at a higher price, setting
the stage for a battle over the Japanese company by two of the
biggest names in global private equity.
KKR initially offered 8,800 yen ($58.71) per share in August
which was followed last month by Bain's 9,450 yen per share bid.
KKR then switched to a two-stage process that would allow
shareholders to take part in an initial tender or a later one -
both at 8,800 yen per share.
The first stage was previously due to expire on Monday, Oct.
21 but will now expire on Nov. 5, KKR said.
KKR has secured commitments from major shareholders 3D
Investment Partners and Farallon Capital, who together own
around 32.7% of Fuji Soft, to tender their shares in the first
stage.
Fuji Soft's board on Friday reiterated its support for the
first stage of the KKR tender but also said it would be logical
for shareholders to wait to see the outcome of Bain's proposal,
adding that it had not made a decision on either Bain's bid or
KKR's second stage.
Bain has said its offer is predicated on winning the
company's backing.
Fuji Soft founder Hiroshi Nozawa in a letter last week urged
the company to withdraw its recommendation for KKR's offer as
Bain's higher price was "clearly in the common interest of
shareholders".
Nozawa, who along with his family holds 18.5% of Fuji Soft's
shares, also questioned the necessity of privatisation, which he
said was led by investors rather than management.
($1 = 149.8800 yen)
(Reporting by Anton Bridge; Editing by Christopher Cushing,
Kirsten Donovan)
((Anton.Bridge@thomsonreuters.com;))