MBK submits tender offer for Tokyo-listed Accordia Golf

The private equity firm is willing to pay JPY1,210 per share for all outstanding shares in Accordia, according to a filing. This represents a 16.9% premium to the November 29 closing price. The total consideration amounts to JPY85.3 billion, although this would rise to JPY102.5 billion if all stock options are exercised.

Three existing shareholders, K.K. Reno, Aya Nomura - the daughter of Yoshiaki Murakami, one of Japan's best known activist investors - and Office Support Corporation have agreed to vote their collective 22.77% holding in favor of the MBK bid. For the tender offer to go through, investors accounting for at least 66.67% of the company must agree to sell their shares.

Accordia was created by Goldman Sachs in 2002 following the acquisition of various golf assets from Nitto Kogyo, a local real estate developer that had filed for bankruptcy protection. It completed a string of bolt-on acquisitions and listed the business in 2006. Goldman completed its exit in 2011.

As of March, Accordia managed 136 golf courses, comprising 43 self-owned facilities and a further 93 operated on a contract basis. It also had 21 driving ranges - 21 self-owned and five leased - as well as another 623 affiliated driving ranges.

Revenue came to JPY48.5 billion for the 2016 financial year, down from JPY63.9 billion in 2015. Net income fell to JPY5.46 billion from JPY6 billion, while EBITDA dropped to JPY11.5 billion from JPY12.8 billion. Most of the company's revenue comes from golf course operation, although it also generates income from golf equipment sales and restaurants..

MBK will make the investment via its third North Asia buyout fund, which closed in 2013 at $2.7 billion. The GP is said to be targeting up to $4 billion for a fourth vehicle.

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• Topics
• North Asia
• Consumer
• Real estate
• Buyouts
• Japan
• MBK Partners