Fuji Soft to Review Bain Capital’s Takeover Offer

Japan-based Fuji Soft Inc. (JP:9749) announced that it would carefully review Bain Capital’s takeover offer, which surpasses the previous bid from the private equity firm KKR (KKR). The news came after the U.S.-based investment company Bain Capital made an offer to acquire Fuji Soft last week in a deal valued at $4 billion. Fuji Soft shares opened higher today following Bain’s offer and gained over 7% as of writing.

Fuji Soft is an IT company providing a wide range of services, including robotics technology, cloud integration, and business software solutions.

Fuji Soft Caught in Potential Bidding War

Bain Capital offered to buy Fuji Soft shares at ¥9,450 per share as compared to KKR’s competing bid of ¥8,800 per share made in September. With this offer, Bain has potentially sparked a bidding war for Fuji Soft.

After KKR’s offer, the company said that its board decided to recommend shareholders accept KKR’s bid. However, the better offer from Bain suggests that the Japanese firm may have rushed into agreeing to the sale. The company noted that its recommendation for KKR’s offer may now change and it is yet to decide on Bain’s proposal.

Additionally, Fuji Soft announced that its board and a special committee will carefully evaluate Bain’s proposal for privatization. On the other hand, Bain indicated it would proceed with the offer in late October, pending Fuji Soft’s support.

KKR Remains Confident About its Offer

The Wall Street Journal reported that a spokesperson for KKR asserted that their offer is superior and in the best interest of Fuji Soft and its stakeholders.

KKR started a tender process after securing support from major shareholders, 3D Investment Partners and Farallon, who together own 32.68% of Fuji Soft. They have accepted KKR’s offer and will pull back their tenders only with KKR’s consent.

Year-to-date, Fuji Soft shares have gained more than 50% in trading.

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