New Horizon makes offer for Japan's Sagami
Tokyo-listed kimono retailer Sagami, which is already subject to a tender offer launched by Aspirant Group, has received a competing bid from New Horizon Capital.
The company announced the receipt of a new proposal in a filing, but offered no further information. New Horizon is offering JPY70 per share, according to the Nikkei Asian Review, exceeding the Aspirant bid of JPY56 per share. As of late morning trading on September 27, Sagami's stock was up nearly 47% at JPY157.
Aspirant submitted its offer in mid-August, winning support from FamilyMart Uny Holdings, which agreed to sell its 54% stake in the business - or 21.99 million shares - for a total consideration of JPY1.23 billion ($12.3 million). Aspirant also committed to assume JPY1.8 billion in debt.
This triggered a tender offer for all outstanding shares, which would see the overall investment size rise to as much as JPY2.28 billion.
Established in 1949 as a boutique kimono dealer and listed in Tokyo in 1985, Sagami markets a range of women's clothing, with a focus on kimonos, as well as accessories and jewelry. It is understood to operate more than 400 outlets nationwide. Revenue came to JPY2.1 billion for the 12 months ended February 2016, down marginally on the previous year. Net profit jumped from JPY89.7 million to JPY105 million.
Aspirant is investing via its AG2 fund, a successor to its AG Investment vehicle. The firm was founded in 2012 and focuses on expansion, growth capital, turnaround and restructuring investments within Japan. New Horizon is a mid-market buyout firm that has been in operation since 2006. It is currently investing its second fund.
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