EQT raises Kakaku.com bid to 3,450 yen in Japan PE battle
European buyout group EQT has raised its bid for Japanese internet company Kakaku.com to 682 billion yen, sparking a rare public bidding war with a SoftBank and Bain Capital consortium that highlights intensifying foreign appetite for Japanese assets.
European private equity firm EQT has increased its takeover offer for Japanese website operator Kakaku.com to 3,450 yen per share. The revised proposal values the target at approximately 682 billion yen, or $4.20 billion, and edges out a rival offer from a consortium comprising SoftBank subsidiary LY Corp and Bain Capital.
EQT lifted its offer from a previous 3,000 yen per share and extended its tender offer period to August 3, according to a regulatory filing. The competing domestic consortium, which proposed 3,384 yen per share, has not yet formally launched its bid, leaving EQT with the only active tender offer on the table.
The escalating price tag highlights the growing premium that global buyout groups are willing to pay for viable Japanese targets. Public bidding wars have historically been a rarity in Japan. The Kakaku.com contest demonstrates how foreign capital is now aggressively challenging domestic players, forcing local bidders to react to higher valuations set by international funds.
The final acquisition price will depend heavily on the actions of two critical shareholder blocks. Activist investor Oasis, which controls a 19.52 per cent stake in Kakaku.com, has already signed an agreement to tender its shares to the LY-Bain group. However, this commitment remains strictly contingent on Kakaku.com's management officially endorsing the domestic bid.
The decisive variable may ultimately be KDDI Corp, a major Kakaku.com shareholder. LY Corp and Bain Capital have structured their offer to increase to 3,500 yen per share if KDDI agrees to support their consortium. If KDDI declines to back the domestic group, the EQT bid will likely remain the highest concrete proposal.
This competitive tug-of-war reflects a fundamental shift in Japanese capital markets. Changing corporate governance standards are actively encouraging listed companies to delist to maximize shareholder returns. As these reforms accelerate, foreign private equity funds are entering the market in growing numbers, guaranteeing that buyout competition will only intensify.
Market participants will now closely monitor KDDI's next move and whether Kakaku.com's board breaks its silence to back a specific bidder. Any definitive shift in these stances will likely trigger another round of repricing for the company's shares.
