KKR acquires 35% of Fuji Soft after first stage of tender offer

PRIVATE equity firm KKR has acquired a 35 per cent stake in Japanese software developer Fuji Soft after the first part of its two-stage buyout tender offer, the latter said in a statement on Wednesday (Nov 6).

Although rival Bain Capital had proposed a higher offer in October to take the Japanese company private, KKR now owns enough Fuji Soft shares to be able to block Bain’s privatisation bid, a source familiar with the matter told Reuters.

Investors 3D Investment Partners and Farallon Capital, who collectively own a 32.7 per cent stake in Fuji Soft, had previously agreed to tender their shares to KKR at a price of 8,800 yen per share.

Bain has said it would only launch its 9,450 yen per share bid with approval from Fuji Soft’s management, which it has yet to receive.

Fuji Soft’s share price has generally moved in a narrow range between the two bid prices since August and closed at 9,200 yen on Wednesday.

Bain was not available for comment on the outcome of KKR’s tender.

KKR said it will launch the second stage of its tender offer – also at 8,800 yen per share – in mid-November. REUTERS