Hong Kong-based buyout firm Baring Private Equity Asia (BPEA) on Monday said it has made a counteroffer for Japanese nursing home operator Nichiigakkan Co Ltd, which has agreed to be bought by Bain Capital in a deal valuing it at $1.2 billion.
Baring said in a statement it has made a friendly offer of 2,000 yen a share, higher than Bain’s offer of 1,670 yen and valuing Nichiigakkan at 146 billion yen ($1.37 billion). It said the price was indicative and that it was open to negotiation.
Nichiigakkan shares rose as much as 5% to 1,748 yen after the news.
“BPEA has sent letters to certain members of Nichiigakkan’s founding family, offering to evaluate assisting with a management buyout as well as a tender offer for all outstanding ordinary shares and share acquisition rights of Nichiigakkan,” the private equity firm said.
Nichiigakkan in a statement on Monday said it has not been contacted by Baring regarding a counter bid, which was earlier reported by the Nikkei Business magazine.
Baring’s announcement comes on the day Bain’s bid is set to expire. Bain launched its bid in May and extended it as Nichiigakkan shares traded above Bain’s offer price. Earlier this month, Bain raised its offer to 1,670 yen a share from 1,500 yen, valuing the nursing home operator at 122 billion yen.
The U.S. buyout fund has secured support from Singapore-based Effissimo Capital Management, which owns 12.46% of Nichiigakkan. It said Effissimo would tender its shares in exchange for an undisclosed stake in a vehicle that would indirectly own Nichiigakkan.
Bain also said it has secured a 44% stake from Nichiigakkan’s top management and founding family members.
Bain representatives were not immediately available for comment.
Source: Reuters.com