As of July 2024, the battle has intensified with repeated price adjustments and shifting support from major shareholders, leaving the company’s future ownership uncertain.
EQT’s 600 Billion Yen Tender Offer for Kakaku.com
Escalating Bids: EQT and LINE Yahoo’s Rival Offers
The firm currently faces a volatile path toward potential privatization, with two distinct camps vying for control of the data-rich platform.
EQT, which first proposed a move toward privatization in May 2024, announced a total acquisition plan valued at approximately 600 billion yen. The firm launched a formal tender offer (TOB) on May 13, 2024, at an initial price of 3,000 yen per share. Following competitive pressure, the European firm raised its offer to 3,450 yen on July 17, 2024, and extended its tender deadline for the third time, now set for August 3, 2024.
LINE Yahoo’s Pursuit of Kakaku.com’s User Data
After an initial proposal in May, the group officially offered 3,384 yen per share on July 1, 2024. Furthermore, the LINE Yahoo group has indicated a policy of potentially raising its purchase price to a higher level, contingent on cooperation from key shareholder KDDI. Regarding the status of these negotiations, LINE Yahoo has stated, We will refrain from providing details.
Kakaku.com Board’s Withdrawal of EQT Endorsement
Shareholder Divide and Strategic Valuation
The board of Kakaku.com previously recommended that shareholders support the EQT bid, but this endorsement was withdrawn following the formal entry of the LINE Yahoo consortium. The company has since left the decision to its shareholders, reflecting a lack of consensus on the best path forward.
IT journalist Kenta Yamaguchi noted that the firm’s internal data, which can be used to make proposals that match users’ preferences, can be combined with life-related services such as the free messaging app “LINE” to generate new revenue models. Similarly, EQT plans to use the acquisition to advance investment in AI and digital fields, aiming to boost the development of new services utilizing user information to improve corporate value over the medium to long term.
The stances of the major shareholders remain divided:
- However, the possibility remains that Oasis could switch to the EQT proposal if EQT presents a sufficiently high price.
- KDDI: Holding a significant stake, the company has adopted a position of judging appropriately after looking at both proposals.
August 3 Deadline for EQT and LINE Yahoo Final Proposals
With the EQT tender offer deadline now pushed to August 3, the market awaits the next formal move from either consortium. The outcome will determine whether Kakaku.com proceeds with EQT’s plan for privatization and digital investment or integrates into the LINE Yahoo ecosystem to leverage its data for new revenue models.
Sources: Yomiuri, topics.smt.docomo.ne.jp.
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