KKR raises offer for Fuji Soft in US$4.3 billion tussle with Bain

KKR & Co raised its offer price for Fuji Soft to fend off a rival bid from Bain Capital, the latest chapter in a months-long battle for the Japanese software company.

The New York-based private equity firm increased its tender offer for Fuji Soft to 9,850 yen per share, putting it above the 9,600 yen per share that Bain Capital said it planned to offer. That values Fuji Soft at around 664 billion yen (S$5.8 billion).

Shares of Fuji Soft are trading above what both firms are seeking to pay. The stock rose 1.8 per cent to 9,979 yen in Tokyo after the Nikkei newspaper earlier reported KKR’s latest proposal.

KKR will extend its tender offer period to Feb 19, it said in a statement. The firm had originally stuck to its 9,451 yen per share bid, pointing to support from Fuji Soft’s board.

The action is the latest manoeuvre in a tussle that also marked a rare hostile bid in Japan. KKR had initially announced a tender offer in August to take Fuji Soft private, but Bain soon after publicised a rival proposal that forced KKR to raise its offer price. Bain then bumped up its bid again, putting the deal in limbo.

Bain’s offer has lacked support from the Japanese company. Fuji Soft’s board has continued to support KKR’s bid even when it was lower, saying it would be completed earlier and allow shareholders to cash out more quickly.

The public battle underscores how fast the private equity landscape is changing in Japan as competition heats up for assets in the country’s booming buyout market. Until now, global funds have preferred a low-key approach to dealmaking, mindful of the need to manage reputations built up steadily after years of being seen locally as vultures. BLOOMBERG

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