Bain Capital and Lone Star consider bids to take Nikkon private
Japanese logistics group Nikkon Holdings, which specializes in supply chains for the automotive industry, will hold a second round of bidding on a possible privatization of the company in the first half of September. Investment funds Bain Capital and Lone Star Funds are considering submitting their proposals, The Japan Times reports, citing informed sources.
Second round of bidding
The first round took place in June. Before that, in May, reports emerged that Tokyo-based Nikkon had hired financial advisers and formed a special committee of external directors to consider the matter.
A Bain Capital representative declined to comment. Representatives of Nikkon Holdings and Lone Star Funds did not respond to requests for comment.
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Share price growth
According to the sources, both U.S. investment funds advanced to the next stage and are conducting due diligence on the company. At the same time, the rise in Nikkon's share price could make it more difficult for potential buyers to profit from the proposed investments.
Since the start of the year, Nikkon shares have risen by more than 50% amid news of a possible privatization. The company's market capitalization stands at ¥665 billion, or $4.2 billion. According to the sources' estimates, a buyout offer could be below the company's market valuation, which could complicate the bidding and investors' decisions on selling shares.
Shareholders and assets
According to data compiled by Bloomberg, U.S.-based Farallon Capital Management owns 23% of Nikkon shares, while Hong Kong-based Oasis Management holds 17%. Nikkon has also said it intends to sell real estate, including product-shipping facilities, which the company expects will not generate higher profits.
