Bain raises tender offer price for Japan's Kosaido
Bain Capital Private Equity has sweetened a tender offer initiated in January for Japan-listed printing and IT services provider Kosaido. The revised bid values the company at about JPY17.4 billion ($157 million).
Bain has agreed to buy all outstanding shares at JPY700 apiece, representing a 15% increase on the firm’s previous offer, which valued the company at JPY15.2 billion. Kosaido stock spiked 90% after the first offer to a four-year high of JPY719 and was trading steadily at JPY717 as of late-morning March 11.
According to a filing, Sawada Holdings will sell a 12.4% stake as part of the transaction. The proposed privatization is expected to give Kosaido flexibility to reorient its business for future growth, including a re-focus on the core printing and publishing operations.
Kosaido was founded in the 1950s and was responsible for Japan’s first computer-based character typographical system. It has since diversified into a number of disparate segments, including human resources, funeral services, and golf course management.
The company generated revenue of JPY36.5 billion for the 12 months ended March 2018, up from JPY34.9 billion the prior year. During the same period, net income increased from JPY3.27 billion to JPY3.74 billion.
Bain closed its fourth Asian private equity fund at $4 billion in December. Its standout investment to date is the $18 million acquisition of Toshiba Memory Corporation, Asia’s largest-ever buyout. Other recent Japan activity by the firm includes a JPY151 billion bid for advertising agency Asatsu-DK in late 2017.
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