KKR & Co. is planning a tender offer to take Taiyo Holdings Co. private in a deal that values the Japanese firm at approximately ¥500 billion (US$3.2 billion or RM12.93 billion).
Under the proposed transaction, KKR intends to pay ¥4,750 (RM120.48) per share, according to a statement released late Tuesday. This price represents a 117% premium over the six-month average unaffected closing price as of May 27, prior to media reports about a potential bidding process. Following the announcement, Taiyo shares fell 5.7% to ¥4,700 in Tokyo on Wednesday, marking the lowest level since December 22.
The tender offer has received the support of Taiyo’s board of directors, as well as its largest shareholder DIC Corp, asset manager Kowa Co, and funds managed by Hong Kong-based Oasis Management Co., which together hold roughly 42.2% of the company’s outstanding shares. The founding family has indicated plans to reinvest in the investment vehicle that will own Taiyo post-transaction, maintaining a stake in the company.
According to sources familiar with the matter, discussions between KKR and Taiyo began in February, with the parties finalizing the take-private offer over the past several months. Initial expectations had suggested a potential offer price below Taiyo’s then level of ¥6,000 per share, highlighting the premium now being proposed in the deal.
The move reflects KKR’s continued focus on strategic acquisitions in Asia, particularly in companies with strong fundamentals and growth potential that can benefit from private ownership and long-term operational support.
