Japanese electronics chemicals manufacturer Taiyo Holdings has received competing acquisition proposals from two private equity firms – KKR & Co, and domestic buyout specialist Nippon Sangyo Suishin Kiko (NSSK) – with both bids aiming to take the company private via tender offer, according to a report by Bloomberg citing sources familiar with the matter.
In a statement issued after Bloomberg first reported the news, Taiyo confirmed it had received multiple strategic proposals, including options for capital and business alliances as well as privatisation. The Tokyo-listed company has established a special committee to review the offers and determine the best course of action. No formal decision has been made to date.
Both KKR and NSSK have submitted separate proposals, each seeking to acquire Taiyo at a premium to its current share price through a public tender offer, the sources said. Taiyo, a key global supplier of solder resist for printed circuit boards, currently holds a market capitalisation of approximately JPY300bn ($2bn), per Bloomberg data.
A central consideration in the review process will be the stance of DIC Corp, Taiyo’s largest shareholder, which holds roughly 20% of the outstanding shares. DIC, itself a chemicals manufacturer, entered into a capital alliance with Taiyo in 2017. Market participants are closely watching for any indication of DIC’s position on the potential buyout, given its strategic alignment with Taiyo.
Shares in DIC rallied as much as 13% on Wednesday amid the speculation. Taiyo shares were untraded, pending a surge of buy orders.
The development comes against the backdrop of intensifying pressure from the Tokyo Stock Exchange and activist investors for listed companies to improve capital efficiency, boost shareholder returns, and unlock corporate value. Tender offers and privatisations have become increasingly common as part of Japan’s broader corporate governance reform movement.
One such activist, Hong Kong-based hedge fund Oasis Management, has taken an aggressive stance in recent months. Oasis, which holds an estimated 11% stake in Taiyo, making it the company’s second-largest shareholder, has filed a shareholder proposal ahead of the company’s upcoming AGM on 21 June.
The proposal calls for the removal of President Eiji Sato and Director Kiyofumi Takano, citing concerns over governance standards and conflicts of interest.
Oasis has criticised an executive compensation plan introduced under Sato as “excessive,” and pointed to Takano’s secondment from DIC as evidence of compromised independence. Taiyo has announced it intends to oppose the shareholder resolution.
