KKR plans to privatise Japan's Taiyo Holdings with $3.3 billion tender offer
Trading information for KKR & Co is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid
March 31 : Global investment firm KKR said on Tuesday that an entity owned by its investment funds seeks to make a tender offer to buy all shares of Japanese chemical manufacturer Taiyo Holdings for 528.56 billion yen ($3.33 billion).
KKR is offering 4,750 yen per Taiyo share, a 4.7 per cent discount to the company's last closing price.
The firm added that it has received support from top shareholder DIC Corp, Kowa Co, and Oasis Management for the privatization, who all collectively represent 42.2 per cent of Taiyo's outstanding shares.
KKR has inked agreements with DIC and Kowa, an asset manager linked to Taiyo's founding family, both of whom agreed to sell their shares through a share consolidation and buyback following completion of the deal, it said in a statement.
The founding family seeks to re-invest in the KKR-managed investment vehicle that will own Taiyo Holdings, the company added.
KKR also entered into an agreement with Oasis Management, where Oasis will tender its shares, which represent nearly 15.62 per cent of Taiyo's total outstanding shares.
($1 = 158.9500 yen)
