KKR secures over one-third of Fuji Soft after first stage of tender offer, says source

TOKYO (Reuters) – Private equity firm KKR has secured more than one-third of the shares in Japanese software developer Fuji Soft after the first part of its two-stage buyout tender offer, a person familiar with the matter said on Wednesday.

The person did not state the exact share of Fuji Soft’s shares KKR secured and asked not to be identified because the result has not yet been publicly disclosed.

Although private equity rival Bain Capital had proposed a higher offer in October to take the company private, the source said KKR now owns enough Fuji Soft shares that it would be able to block any Bain privatisation bid.

Investors 3D Investment Partners and Farallon Capital, who collectively own 32.7% of Fuji Soft’s shares, had previously agreed to tender their shares to KKR at a price of 8,800 yen per share.

Bain said it would only launch its 9,450 yen per share bid with company management approval, which it has yet to receive.

KKR has said it will launch the second stage of its tender offer – also at 8,800 yen per share – as soon as practical after the first offer has completed.