Bain Capital fends off higher bid for Japan aged-care facility operator

[TOKYO] Bain Capital fended off a last-minute challenge from rival private equity firm Baring Private Equity Asia (BPEA), clinching a US$1.2 billion deal on Tuesday to buy aged-care facility operator Nichiigakkan with a lower bid.

Nichiigakkan said Bain Capital's bid to buy shares in the company was successful and it would be delisted.

While a victory for Bain, the deal appears to be less of a win for minority shareholders as Hong Kong-based Baring had offered to buy Nichiigakkan at a higher price.

Baring said on Monday it had made a friendly offer of 2,000 yen a share, higher than Bain's offer of 1,670 yen and valuing Nichiigakkan at 146 billion yen (S$1.89 billion). It said the price was indicative and that it was open to negotiation.

Bain launched its bid in May and extended it as Nichiigakkan shares traded above Bain's offer price. Earlier this month, Bain raised its offer to 1,670 yen a share from 1,500 yen.

Bain's success was mainly due to a deal it made with Singapore-based Effissimo Capital Management, which owns 12.46 per cent of Nichiigakkan. Bain has said Effissimo would tender its shares in exchange for an undisclosed stake in a vehicle that would indirectly own Nichiigakkan.

Bain also said it had secured a 44 per cent stake from Nichiigakkan's top management and founding family members.

Nichiigakkan rose to as high as 1,743 yen on Tuesday morning. It closed at 1,666 yen in the Tokyo morning trade.

REUTERS