SoftBank’s LY Corp and Bain Capital have raised their offer for Kakaku.com, valuing the Japanese online services group at JPY670bn ($4.1bn), according to a report by Reuters.
The revised legally binding offer values Kakaku.com at JPY3,384 per share, up from the JPY3,232 per share proposed in May. The latest bid widens the gap over a rival offer from EQT, which currently stands at JPY3,000 per share.
Following the new proposal, Kakaku.com said it would continue discussions with EQT over its offer price while changing its recommendation on the Swedish firm’s bid from supportive to neutral. EQT has extended its tender offer period by two weeks to 16 July.
LY and Bain said their offer would rise further to JPY3,500 per share if KDDI Corp, one of Kakaku.com’s largest shareholders, agreed to support the bid. The pair said they would not launch their offer unless Kakaku.com issued an opinion in support, with a tender offer expected around September if that condition is met.
Kakaku.com operates a range of online platforms, including its price-comparison website, restaurant review and reservation service Tabelog, and job-search platform Kyujin Box.
Bain and LY said they could improve Kakaku.com’s profitability through additional capital, management support and closer alignment with LY’s existing businesses, which include Line and Yahoo Japan.
