Fuji Soft says it will consider offer from Bain Capital – update

By Megumi Fujikawa

TOKYO — Fuji Soft said it would sincerely consider Bain Capital’s public offering, which outbid private equity firm KKR, possibly setting the stage for a bidding war for the Japanese software developer.

Bain Capital on Friday offered to buy Fuji Soft shares for 9,450 yen each, equivalent to $63.10 per share, compared with rival KKR’s offer of 8,800 yen per share.

Fuji Soft said on Tuesday that it has not discussed terms with Bain, but the company’s board of directors and special committee would sincerely examine the feasibility of privatization and potential improvements to its corporate value based on Bain’s proposal.

Bain said it plans to launch the offering in late October if it gets support from Fuji Soft.

KKR began a bidding process for all of Fuji Soft’s common shares and stock options in early September, with the private equity firm securing the support of two major shareholders, 3D Investment Partners and Farallon.

The two investors, who together own 32.68% of Fuji Soft, agreed to KKR’s offer and said they would only withdraw their proposals with KKR’s consent.

“KKR’s offer is superior and in the best interests of the company and all of its stakeholders,” a KKR spokesperson said in response to Bain’s tender offer.

KKR has a proven track record of working closely with management teams and employees and ensuring certainty of completion to drive growth for Japanese companies, the spokesperson said.

KKR said it will conduct the public offering in two stages. Fuji Soft recommended that its shareholders participate in KKR’s first offer, but has not yet decided whether to endorse the second.

The Japanese company told its shareholders on Tuesday that its recommendation status could change following Bain’s proposal.

Bain’s public offering is supported by Fuji Soft’s founding family, including founder Hiroshi Nozawa. The family holds an 18.5% stake in the company.

Fuji Soft shares recently rose 7.3% to 9,660 yen after briefly reaching 9,710 yen.

Write to Megumi Fujikawa at [email protected]

(END) Dow Jones Newswires

October 14, 2024, 10:22 pm ET (02:22 am GMT)

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