SoftBank and Bain Raise Kakaku Bid to $4.1 Billion
Synopsis
The consortium has increased its offer for Kakaku.com, widening its lead over EQT and intensifying the battle for the Japanese price-comparison and internet services company.
Key Highlights
- LY Corp, Bain Capital Upped Offer for Kakaku.com to ¥670 billion ($4.12 billion) level.
- The new bid raises Kakaku.com share price to ¥3,384 per share from ¥3,232.
- KDDI support would raise the offer to a maximum of ¥3,500 per share.
- The latest offer came above EQT’s ¥3,000-per-share bid.
Kakaku.com is a Japanese price-comparison website operator that has received an increased takeover offer from SoftBank owned formats LY Corp and Bain Capital. Valuation of the company at ¥670 billion [$4.12 billion], stretched a leg over rival EQT bid, Via, TokyoMerger.
The legally binding proposal, announced on Wednesday, had LY and Bain say they would raise their bid to ¥3,384 each for all outstanding Kakaku. share compared with the ¥3,232-per-share offer announced in May
Offer Could Increase Further
LY and Bain said the offer price would increase to ¥3500 per share KDDI corp, one of Kakaku.com’s largest shareholders, agrees to support the transaction. The revised proposal strengthens the consortium's position over EQT, whose current offer stands at ¥3000 per share.
Kakaku.com Approaches Both Bidders For Talks
Following the revised bid, Kakaku.com intends to request discussions with EQT over the offer price and would also continue negotiations with both bidders. The company also withdrew its recommendation to shareholders to vote for EQT’s offer and instead updated its recommendation to neutral as it awaits more negotiations.
Source: Reuters
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