Japan's J-Star seeks seafood company take-private

J-Star is willing to buy all outstanding shares for JPY 1,137 apiece. The company has traded in a range of JPY 790 to JPY 860 for the past four months. The stock climbed 20.5% to close at JPY 992 on August 7 following confirmation of the tender offer, giving the company market capitalisation of about JPY 11.4bn.

YSK's board endorsed the offer in a filing. SSK Foods is the largest shareholder with 11.2%, followed by Master Trust Bank of Japan with 7% and Shizuoka Bank with 5.1%. The minimum acceptance threshold has been set at 66.7%.

Founded in 1959, YSK produces a range of frozen fish – including tuna, crab, shrimp, and bonito ¬– as well as related seasonings and fish extracts used in various oils and soups. This includes flavoured and low-salt seasonings, sweeteners, mustard, and spices.

Revenue has generally declined in recent years but rebounded about 6% during the 2023 financial year to JPY 12.8bn. Net income fell 65% to JPY 268m, although the latter figure represents a small increase versus the JPY 250m generated in 2021.

J-Star is participating through its fifth flagship fund, which closed on JPY 75bn last year. Cheque sizes typically fall in a range of JPY 1bn-JPY 3bn. Succession-driven M&A has historically accounted for the bulk of deal flow.

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• Topics
• North Asia
• Buyouts
• Consumer
• Japan
• J-Star
• Food