KKR Extended Tender Offer for Fuji Soft

By Anton Bridge

TOKYO (Reuters) – U.S. investment firm KKR has extended the first stage of its tender to take Japanese IT services firm Fuji Soft private by 10 working days, according to a filing made on Monday.

The extension follows a rival offer from Bain Capital, which proposed to purchase all shares of Fuji Soft at a higher price, intensifying competition between the two prominent private equity firms.

Initially, KKR offered 8,800 yen ($58.71) per share in August, later surpassed by Bain's bid of 9,450 yen per share.

KKR shifted to a two-stage process, allowing shareholders to participate in an initial tender or a later one at the same price of 8,800 yen per share.

The first stage, originally set to expire on October 21, will now close on November 5, KKR announced.

KKR has garnered support from significant shareholders 3D Investment Partners and Farallon Capital, who collectively hold approximately 32.7% of Fuji Soft shares, agreeing to tender in the first phase.

Fuji Soft's board reiterated its support for KKR's preliminary stage but suggested shareholders might find it prudent to await the outcome of Bain's proposal, as no decision has been made regarding either bid.

Bain's offer depends on receiving Fuji Soft's backing.

Hiroshi Nozawa, the founder of Fuji Soft, urged in a letter last week for the company to retract its endorsement of KKR's offer, arguing that Bain's higher price is more beneficial to shareholders. Nozawa and his family possess 18.5% of Fuji Soft shares and have raised concerns about the need for privatisation driven by investor interests rather than management's direction.

($1 = 149.8800 yen)