The board of Japan’s Fuji Soft will continue to support the first stage of a 558.4 billion yen ($3.72-billion) buyout offer from KKR, it said on Friday, despite having received a higher counter-offer from Bain Capital.
The IT company backed an 8,800 yen per share offer from KKR in August, but last month Bain made a rival proposal of 9,450 yen per share.
KKR then switched to a two-stage process that would allow shareholders to take part in an initial tender or a later one – both at 8,800 yen per share.
Major Fuji Soft shareholders 3D Investment Partners and Farallon Capital, together owning a 32.7 per cent stake, have agreed to take part in the initial tender, which runs until Oct. 21.
Last week, Bain said its offer was binding, contingent upon gaining Fuji Soft’s approval.
Fuji Soft said on Friday that Bain’s offer was still under consideration, and that it would decide its opinion on any Bain tender offer – as well as the second stage of KKR’s offer – at the start of each.
A KKR spokesperson said its deal “represents the best future for the company given the certainty of our ability to complete the privatization and our history of creating value for Japanese businesses.”
A spokesperson for Bain, which like KKR has been active in Japan for years, was not immediately available for comment.
Fuji Soft’s founder, Hiroshi Nozawa, on Thursday came out in favor of Bain’s bid. Nozawa and his family together hold 18.5 per cent of Fuji Soft’s shares.