Key Takeaways:
- LY Corp and Bain Capital sweeten their offer for Kakaku.com to $4 billion.
- The new bid tops a previous $3.76 billion offer from private equity firm EQT.
- The bidding war has pushed Kakaku.com's shares to their highest since 2021.
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LY and Bain offer $4 billion for Kakaku.com, topping EQT's bid
TOKYO — A bidding war for Japanese e-commerce operator Kakaku.com Inc. has escalated, as SoftBank’s LY Corp. and private equity firm Bain Capital boosted their joint offer to $4 billion, seeking to beat a rival bid from Sweden’s EQT AB.
The new offer, announced Thursday, overtakes the approximately $3.76 billion proposal made by EQT in April. EQT’s initial tender offer had already secured the support of Kakaku.com’s board and major shareholders Digital Garage Inc. and KDDI Corp., who collectively hold about 38.1% of the company’s shares.
The sweetened bid from the LY-Bain consortium values the operator of the popular price comparison website and the restaurant review platform Tabelog at a significant premium, though an exact percentage was not disclosed. EQT’s offer of 3,000 yen per share had previously sent Kakaku.com shares soaring 17% to 3,425 yen, their highest level since late 2021, signaling strong investor appetite for a take-private premium.
This contest highlights rising interest from global and local private equity firms in Japan's publicly listed companies, which are increasingly seen as undervalued. The outcome of the battle for Kakaku.com could set a new benchmark for take-private transactions in the country, where corporate governance reforms are encouraging companies to unlock shareholder value. EQT has been a notable player in this trend, pursuing privatizations of companies like Fujitec, CareNet, and Mamezo. The successful acquirer will gain control of a powerful platform in Japan's growing digital economy.
This article is for informational purposes only and does not constitute investment advice.
