The takeover war continues to heat up, with Bain and LY considering increasing their bid for Kakaku, the operator of Japanese price comparison website
As the bidding war to take Japanese price comparison site operator Kakaku.com private continues to heat up, Bain Capital and Its subsidiary LY Corp is reported to be considering further raising its joint acquisition offer. The new per-share bid may exceed the 3,450 yen per share proposed by EQT last week. Kakaku.com operates Japan's well-known price comparison website, restaurant review platform and job search services. Since the takeover war broke out, Kakaku’s stock price has risen by nearly 60%, and its current market value is approximately US$4.5 billion. The high share price suggests investors expect bidders to continue raising their bids. According to people familiar with the matter, Bain and LY are preparing a new round of bids, which may be submitted in the near future, but discussions are still ongoing and no final decision has been made. Previously, the consortium had increased its offer from 3,232 yen per share to 3,384 yen, and added that if the major shareholders If it supports the terms, the price will be increased to 3,500 yen per share. EQT's current offer of 3,450 yen per share is the highest effective bid, and Kakaku management supports EQT's acquisition proposal. To this end, EQT has extended the acquisition offer period to August 3 to gain more time to communicate with major shareholders. Some analysts pointed out that if Bain and LY consortium are to succeed, they must prove to management the certainty of the transaction and the feasibility of a higher bid.