Fuji Soft founding family affirms support for Bain's $2 billion hostile takeover bid
FILE PHOTO: Logo of Bain Capital is screened at a news conference in Tokyo, Japan September 28, 2017. REUTERS/Kim Kyung-Hoon/File Photo
TOKYO :The founding family of Japanese IT company Fuji Soft on Wednesday reiterated its support for a takeover bid by private equity firm Bain Capital that is opposed by Fuji Soft's board, it said in a statement jointly released with Bain.
In a bidding war with rival private equity giant KKR, Bain last week offered 9,600 yen per share, 1.6 per cent more than KKR's 9,451 yen bid, and on Wednesday went hostile after Fuji Soft's board rejected the higher offer and supported KKR's.
Separately on Thursday, KKR extended its tender offer deadline to Jan. 9.
Fuji Soft founder Hiroshi Nozawa joined Bain in questioning the independence of the special committee set up by the board to scrutinise the bid, saying he had "strong concern and distrust regarding the process of selecting the members".
The special committee had "lost sight of the purpose of the special committee", Nozawa and Bain said, adding that if their bid were successful, they planned to manage the business in a way that respects the current management team.
Fuji Soft declined to comment on the release.
Nozawa, who together with family members owns 18.6 per cent of Fuji Soft's shares, came out in support of Bain's bid in October and at the time denounced the way the privatisation process had been conducted.
KKR, which has the backing of the Fuji Soft board, secured 33.9 per cent of the company's shares in a first-round tender that managed to dodge an earlier bid from Bain that was higher than its own at the time.
Fuji Soft rejected Bain's offer on the grounds that two large shareholders would hamper management decision making and Bain's tender offer would not conclude for three months.
Through its tender, Bain is aiming to acquire 50.1 per cent of Fuji Soft's shares, including the Nozawa family's stakes.
