EQT AB has officially raised its offer to acquire Kakaku.com Inc., a Japanese price comparison website operator, to ¥3,500 per share. This new bid values the company at approximately ¥690 billion ($4.3 billion), a significant increase from its previous offer of ¥3,000 per share, or $3.7 billion. The move intensifies the bidding war for Kakaku.com, directly challenging a competing offer from Bain Capital and LY Corp. This updated offer matches the higher end of Bain and LY's proposal, which had conditionally offered ¥3,500 per share if major shareholder KDDI agreed to the transaction.
Bain Capital and LY Corp. had previously submitted a binding offer of ¥3,384 per share, or $4.1 billion, which could have risen to ¥3,500 per share under certain conditions. This earlier offer had already surpassed EQT's initial bid. The competitive bids highlight the increasing appeal of Japanese companies to private equity investors, driven by governance reforms and a trend towards take-private transactions. Kakaku.com's board had initially endorsed EQT's bid but later shifted to a neutral stance, indicating that it would engage in discussions with both bidders.
Kakaku.com operates popular online services including its flagship price-comparison website, the restaurant review platform Tabelog, and the job search service Kyujin Box. LY Corp., a SoftBank-backed internet company, emphasized the strategic value of Kakaku's online services, particularly in the context of advancements in artificial intelligence that are reshaping internet search and consumer platforms. The escalating bids underscore investors' belief in higher offers, with Kakaku shares trading above both existing bid prices in recent sessions, signaling expectations for further price increases before a definitive agreement is reached. EQT's tender offer was originally scheduled to close on Thursday, July 16th, and has now been extended.
