Bain Capital Ends Acquisition Battle with KKR for Fuji Soft

US Private Equity Firm Abandons Takeover Bid for Fuji Soft

Bain Capital Withdraws Proposal Amid Rival KKR’s Higher Offer

US private equity firm Bain Capital announced on Monday that it will not launch a tender offer for Fuji Soft, effectively ending a months-long takeover battle with rival KKR. The decision comes after KKR raised its offer above Bain’s in a bitter bidding war.

Bain’s Decision to Withdraw

Bain had previously stated it might withdraw its proposal for Fuji Soft, citing the company’s board’s rejection of its earlier offer. Despite this, Bain continued to press ahead, arguing that the rejection harmed the interests of minority shareholders. However, KKR’s improved offer has proven too enticing, and Bain has chosen to concede.

KKR’s Winning Bid

KKR’s offer of 9,850 yen (S$87) per share, made earlier this month, surpassed Bain’s most recent offer of 9,600 yen made in December. The increased offer has given KKR the upper hand in the takeover battle.

Bain’s Statement

In a statement on its website, Bain Capital expressed its wishes for the continued growth of Fuji Soft under the new governance led by KKR’s shareholders. The company’s decision to withdraw its proposal marks an end to a highly competitive dealmaking environment in Japan, as global investment firms target companies with underutilized assets or ineffective corporate governance.

Market Reaction

On Monday morning, shares of Fuji Soft, a Yokohama-based software and systems developer valued at over US$4 billion, were traded at the KKR-offered price of 9,850 yen.

Conclusion

Bain Capital’s decision to withdraw its takeover bid for Fuji Soft marks the end of a high-stakes battle between two major private equity firms. The outcome highlights the intense competition in the Japanese market, as global investors seek to capitalize on undervalued companies. The saga serves as a reminder of the importance of effective corporate governance and the impact it can have on shareholder value.

Frequently Asked Questions

Q: Why did Bain Capital withdraw its takeover bid for Fuji Soft?
A: Bain Capital withdrew its bid after KKR raised its offer above Bain’s, making it a more attractive option for minority shareholders.

Q: What was the final offer made by KKR?
A: KKR’s final offer was 9,850 yen (S$87) per share.

Q: What is the current value of Fuji Soft?
A: Fuji Soft is valued at over US$4 billion.

Q: What is the significance of this takeover battle in the Japanese market?
A: The battle highlights the intense competition in the Japanese market, as global investors seek to capitalize on undervalued companies with underutilized assets or ineffective corporate governance.