Key facts
- EQT has increased its offer for Kakaku.com to 3,570 yen per share.
- The Bain-led consortium's current offer is 3,520 yen per share.
- EQT's previous offer was 3,450 yen per share.
- The Bain-led consortium previously indicated they could raise their offer to 3,640 yen per share.
- Kakaku.com's largest shareholders are Digital Garage, Oasis Management, and KDDI.
EQT has increased its offer for Japanese website operator Kakaku.com to 3,570 yen per share, escalating a takeover contest with a consortium led by Bain Capital and LY Corp. The latest proposal, announced Thursday, surpasses the rival offer of 3,520 yen per share and EQT's previous bid of 3,450 yen.
EQT, which has the backing of Kakaku.com's board, also extended its tender offer deadline to August 3 from July 22, and then to August 27 from August 17. The Bain-led group has indicated they could raise their proposal to as much as 3,640 yen a share if they secure the support of Kakaku shareholder KDDI Corp. The Bain-led group has been targeting a tender offer launch in mid-September.
Kakaku.com's largest shareholders are Digital Garage, Oasis Management, and KDDI, which collectively control close to 60% of the company. Oasis Management, an activist investor, holds 19.52% of Kakaku.com's shares and had previously agreed to tender its shares to LY and Bain, contingent on gaining management support.
The bidding battle comes as Kakaku.com faces pressure on its underlying performance, having recently reported first-quarter operating income below analyst expectations. Despite the earnings miss, investor interest in the business remains strong, with Kakaku.com shares closing at 3,714 yen on Thursday, valuing the company at approximately $4.6 billion.