In today’s briefing:
- [Japan M&A] Bain Lets 5-Day Overbid Chance Lapse, Will Wait for EQT Tender To Finish
- Kakaku.com (2371 JP): Bain/LY Hold Firm as EQT/DG Face a Dilemma
[Japan M&A] Bain Lets 5-Day Overbid Chance Lapse, Will Wait for EQT Tender To Finish
- On Friday after the close, Kakaku.com Inc (2371 JP) announced that Bain would not respond to EQT+DG/Kamgras1’s bid bump to ¥3,570 which meant Bain’s ¥3,640 was just 1.96% higher.
- This means Bain will simply let EQT’s current ¥3,570 bid close on 27 August. If the minimum threshold is met, EQT wins. If not, presumably Bain will launch.
- On 18 August, Oasis Management with 19.5% said it did not support a Tender Offer below ¥3,640/share. This, and the market price, may have emboldened Bain. What next?
Kakaku.com (2371 JP): Bain/LY Hold Firm as EQT/DG Face a Dilemma
- Bain/LY (4689 JP) have kept their Kakaku.com Inc (2371 JP) offer unchanged and have decided to wait for the EQT/Digital Garage (4819 JP) offer to close, convinced that it will fail.
- Minorities have a free option on the higher Bain/LY offer. In the worst case, the EQT/DG offer succeeds, and in the best-case, it fails, and minorities get the Bain/LY offer.
- The success of the EQT/DG offer relies heavily on KDDI’s support, which remains uncertain. It is very likely that EQT/DG will at least match Bain/LY’s JPY3,640 offer.
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