Fuji Soft's Decision on Buyout Offers

In a recent statement, Japanese IT firm Fuji Soft has reaffirmed its support for the second stage of a tender offer buyout from U.S. private equity firm KKR, turning down a higher offer from rival Bain Capital. This decision highlights the company's preference for KKR's proposal over Bain's increased bid.

KKR's Current Stake and Offer

KKR currently holds approximately 34% of Fuji Soft's shares, primarily acquired from activist shareholders 3D Investment Partners and Farallon Capital Management at 8,800 yen ($57.18) per share. Last month, KKR raised its offer price for Fuji Soft to 9,451 yen, just 1 yen above Bain's earlier bid. However, Bain responded by increasing its offer to 9,600 yen last week.

Bain's Conditional Offer and Fuji Soft's Position

Bain has stated that it would initiate its tender offer only with the approval of Fuji Soft's board. Fuji Soft, however, has expressed concerns that Bain's inability to take the company private through a squeeze-out, due to KKR owning more than a third of the shares, could lead to a deadlock if Bain's tender offer proceeds.

Currency Conversion

($1 = 153.9000 yen)