Key Takeaways:
SoftBank-backed LY Corp and Bain Capital raised their offer for Kakaku.com to 3,384 yen per share, valuing the Japanese price-comparison website operator at 670 billion yen ($4.12 billion) and widening their lead over Swedish rival EQT in a bidding war that has escalated twice in two months.
"The revised bid reflects our conviction in Kakaku.com's platform and its growth potential in Japan's digital economy," a person familiar with the consortium's strategy said. The group said the offer would rise further to 3,500 yen per share if KDDI Corp, one of Kakaku.com's largest shareholders, agrees to support the bid.
The new legally binding offer, announced late Wednesday, represents a 4.7% increase from the 3,232 yen per share proposed in May and a 12.8% premium over EQT's current offer of 3,000 yen per share. LY and Bain's initial bid in April was 3,000 yen per share, matching EQT's original proposal before the Swedish firm raised its offer to 3,100 yen in May, only to be topped again.
Kakaku.com withdrew its recommendation for shareholders to support EQT's bid, shifting its stance to "neutral" while it engages in talks with both suitors. The company said it would seek discussions with EQT over its offer price, leaving the door open for a potential counterbid.
The contest for Kakaku.com underscores the value investors see in Japan's online comparison-shopping market, where the company operates the dominant platform across consumer electronics, travel, and financial services. KDDI's decision on whether to back the LY-Bain consortium could prove decisive — the telecom carrier's support would trigger the 3,500 yen per share sweetener, adding roughly 23 billion yen to the total deal value.
A successful acquisition would expand LY Corp's digital services portfolio beyond its core messaging and e-commerce businesses, while giving Bain Capital a controlling stake in one of Japan's most visited web platforms. For EQT, losing Kakaku.com would mark a setback in its push into Asian tech assets.
The bidding war has drawn attention from Japan's M&A community as a test case for contested takeovers in a market where hostile or competitive bids remain relatively rare. No regulatory hurdles have been identified, and the deal does not require approval under Japan's Foreign Exchange and Foreign Trade Act given the domestic composition of both bidding groups.
This article is for informational purposes only and does not constitute investment advice.
