Authors Makiko Yamazaki and Anton Bridge report that Fuji Soft’s leading shareholder has confirmed its backing for KKR’s proposal to acquire the Japanese software developer. This confirmation adds fuel to the $4 billion tug-of-war between two of the world’s most significant private equity firms.
Singapore-based 3D Investment Partners, the main shareholder, stated, “Given Fuji Soft’s reiterated backing for KKR’s tender offer, we are confident that KKR is the best match for the company.” This statement was given to Reuters, providing an official confirmation of their support.
In August, KKR proposed a price of 8,800 yen (approximately $58.67) per share. This was followed by a counter-offer from Bain Capital this month of 9,450 yen per share.
KKR announced that it had secured commitments from 3D and another significant shareholder, Farallon Capital. The stakes held by these companies are 23.46% and 9.22% respectively. With these commitments, KKR would control almost a third of the company, enough to thwart a takeover by Bain.
3D revealed that it has an unbreakable agreement with KKR to tender their shares. This agreement is part of the process they initiated last year to gather buyout proposals. While KKR participated in this 3D-led process, Bain declined, citing Fuji Soft’s disinterest.
3D further stated, “KKR has been working with the company on privatisation for over a year.” They expressed confidence that Fuji Soft would continue to thrive under KKR’s ownership.
Bain’s counter-offer prompted KKR to adopt a two-stage method. This would allow shareholders to participate in an initial tender or a later one, both priced at 8,800 yen per share.
On Monday, KKR extended the first stage of its tender offer by ten working days, now set to expire on November 5.
This article would be beneficial for individuals interested in investing, as it provides insights into the ongoing battle for the acquisition of Fuji Soft. However, the main aim of the article is to report on the recent developments in this takeover saga.
