EQT has increased its offer for Japanese price comparison platform Kakaku.com to JPY3,570 per share, escalating a closely fought takeover contest with Bain Capital and LY Corp, according to a report by Bloomberg.
The revised proposal, announced Thursday, represents an increase from EQT’s previous JPY3,450 offer and moves ahead of the JPY3,520 per share currently offered by the Bain-LY consortium.
EQT, which has the backing of Kakaku.com’s board, also extended the tender offer deadline to 27 August from 17 August.
The bidding battle could continue to intensify. Bain and LY, a SoftBank affiliate and operator of Japan’s leading messaging platform, said last month that they could increase their proposal to as much as JPY3,640 a share if they secure the support of Kakaku shareholder KDDI.
The Bain-led group has been targeting a tender offer launch in mid-September.
Kakaku.com’s largest shareholders are Digital Garage, Oasis Management and KDDI, which collectively control close to 60% of the company. Their positions could prove decisive in determining the outcome of the contest.
The latest EQT bid comes as Kakaku.com faces some pressure on its underlying performance. The company recently reported first-quarter operating income below analyst expectations.
Despite the earnings miss, investor interest in the business remains strong. Kakaku.com shares closed at JPY3,714 on Thursday, putting its market capitalisation at approximately $4.6bn.
