US private equity giant KKR has increased its offer price for Japanese IT company Fuji Soft to JPY9,850 per share, surpassing a competing bid from rival buyout firm Bain Capital in an intensifying takeover battle, according to a report by Reuters.
Bain announced the revised offer, which raises its bid by more than 4% from its previous JPY9,451 per share, on Tuesday.
The move puts KKR’s new offer ahead of Bain’s most recent bid of JPY9,600 ($61.82) per share in a $2bn battle that has been ongoing since August 2023.
KKR currently holds a 33.97% stake in Fuji Soft, having secured shares from activist investors 3D Investment Partners and Farallon Capital in the first stage of its two-part bid. However, the firm has struggled to gain a majority as Bain’s higher offer and Fuji Soft’s rising share price have kept many investors from selling to KKR.
KKR has repeatedly extended its tender offer period, with the latest deadline set for Friday. Meanwhile, Fuji Soft’s shares were trading at JPY9,975 in early afternoon trading — above both takeover bids — suggesting that investors anticipate further price increases.
Bain Capital, which has the support of Fuji Soft’s founding family, has yet to formally launch its bid, stating it will only do so if KKR’s offer fails or is withdrawn.
KKR first offered JPY8,800 per share for Fuji Soft in August 2023. Bain countered the following month with a JPY9,450 per share bid, prompting KKR to slightly increase its offer to JPY9,451. Despite Bain raising its bid to JPY9,600, KKR had previously held firm — until now.
