A consortium led by Swedish private equity firm EQT has raised its tender offer for Japanese online platform operator Kakaku.com to 3,450 yen ($21.25) per share, overtaking a competing proposal from a consortium led by SoftBank-owned LY Corp and Bain Capital as the battle for the company intensifies.
EQT said Kamgras 1 K.K., the offer vehicle backed by BPEA Private Equity Fund IX and Digital Garage, increased its offer from 3,000 yen per share after reviewing developments in the sale process. The revised price exceeds the rival consortium’s 3,384-yen-per-share proposal announced on July 1.
The consortium said the higher offer is intended to “further enhance execution certainty” and facilitate the timely completion of the transaction while supporting Kakaku.com’s long-term growth.
EQT added that it has obtained all required regulatory clearances, contrasting its proposal with the competing offer, which is expected to launch no earlier than September and remains subject to regulatory approvals and other conditions.
“Our proposal provides Kakaku.com shareholders with an attractive combination of value, certainty and timing,” Tetsuro Onitsuka, a partner in EQT’s Private Capital Asia team, said in a statement.
The revised offer values Kakaku.com at about 682 billion yen ($4.2 billion), according to Reuters calculations, above the valuation implied by the rival bid. EQT also extended the tender offer period to Aug. 3 from July 22, according to a regulatory filing.
The latest move escalates one of Japan’s most closely watched takeover contests, as private equity firms and strategic buyers compete for attractive technology assets amid a broader wave of mergers and acquisitions encouraged by corporate governance reforms.
Kakaku.com operates Japan’s largest price comparison website, restaurant review platform Tabelog and job search service Kyujin Box, making it a valuable digital platform with extensive consumer data and online marketplace businesses.
Earlier this month, Kakaku.com withdrew its recommendation that shareholders accept EQT’s original 3,000-yen-per-share offer after LY Corp and Bain Capital raised their competing proposal to 3,384 yen per share.
The board adopted a neutral position while continuing discussions with both bidders. The LY-Bain consortium has also said it would increase its offer to 3,500 yen per share if major shareholder KDDI agrees to support the transaction.
EQT said its proposal combines the firm’s experience investing in digital platforms with Kakaku.com’s brands and data assets.
The company cited previous investments in digital marketplace businesses including PropertyGuru, idealista, and Casa.it.
The deal is also part of EQT’s broader expansion in Japan. The investment firm, which opened its Tokyo office in 2006, said it recently completed take-private transactions involving Fujitec, CareNet and Mamezo.
In April, EQT closed its BPEA IX fund with $15.6 billion in commitments, which it described as the largest private equity fund raised for Asia Pacific.