Yahoo Finance Fuji Soft Sticks With KKR Despite Higher Takeover Offer From Bain
(Bloomberg) -- Fuji Soft Inc. is standing by KKR & Co.’s tender for its shares despite receiving a higher bid from Bain Capital that’s won the support of the Japanese software developer’s founder.
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The Yokohama-based company plans to recommend its shareholders accept the first phase of KKR’s tender offer through Monday, people familiar with the matter said, confirming an earlier Nikkei report. Bain last week offered ¥9,450 ($63) a share for the company, compared with KKR’s ¥8,800 proposal, and said it would start its tender bid in late October if Fuji Soft expresses support for the move.
Fuji Soft’s endorsement extends to the first stage of KKR’s takeover, which runs through Oct. 21, and the company will announce its stance on Bain’s proposal at a later date, the people said. Fuji Soft’s major shareholders are struggling to reach a consensus regarding Bain’s proposal, while Fuji Soft has doubts about the feasibility of Bain’s goal of taking the company private, said the people, who declined not to be named disclosing private discussions.
A representative of Fuji Soft could not be reached for comment after business hours.
Fuji Soft founder Hiroshi Nozawa said he supports Bain’s offer and that its approach aligned with the company’s, according to a letter obtained by Bloomberg. Nozawa said he hoped KKR will tender its shares if it acquires them from major shareholders including 3D Investment Partners Pte and Farallon Capital Management. The two shareholders had agreed to sell their stakes to KKR in a binding pact that ensured KKR at least 32.68% of Fuji Soft.
KKR had split its takeover into two stages, after it moved up the start of its tender to Sept. 5, following a non-binding proposal from Bain.
A weaker yen and regulators’ promotion of shareholder value are fueling M&A activity in Japan. Fuji Soft had earlier said it agreed to a buyout by KKR, even though it had received a higher-priced non-binding offer from Bain, because it judged KKR’s offer was more certain to occur.
Fuji Soft contracts software from Fujitsu Ltd., a supplier of computer systems for some of Japan’s biggest banks such as Mizuho Financial Group Inc. and government agencies. The software company’s been fielding demands from Singapore-based 3D Investment Partners, its largest shareholder according to Bloomberg-compiled data, to consider steps such as taking the company private.
--With assistance from Taro Fuse.
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