Japan’s Taiyo Holdings nears deal to go private via KKR buyout
The per-share takeover bid is likely to be less than the current market price of around 6,000 yen, add sources
Add BT as a preferred source
[TOKYO] Japanese chemical manufacturer Taiyo Holdings is in final discussions to be taken private by KKR, sources said.
The Japanese board’s special committee has determined that the US investor’s proposal to buy out the company was acceptable, added sources who asked to not be identified as the negotiations are not public.
The per-share takeover bid is likely to be less than the current market price, which is currently trading at around 6,000 yen, they added.
The sources said that KKR edged out private equity firms that were competing to buy the chemical company. Japan has seen a wave of dealmaking activity this year, particularly in mergers and acquisitions involving private equity.
A spokesperson for Taiyo Holdings declined to comment. A representative for KKR was not immediately available for comment.
Based on previously disclosed materials, Taiyo Holdings’ board of directors were committed to give the “utmost respect” to the committee’s recommendations on whether to remain listed or go private.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
While the company is likely to choose privatisation, it has not yet made a final decision to accept KKR’s proposal. It remains possible that no agreement will be reached, sources noted.
The manufacturer’s management has been in turmoil since the reappointment of former president Eiji Sato as director was rejected at last year’s annual meeting, amid conflicts with shareholders.
One key question is whether the company will be able to formulate a new growth strategy under KKR’s ownership.
Taiyo Holdings enjoys a large market share in inks used for printed circuit boards.
Under Sato, the company worked to strengthen its medical and pharmaceutical businesses. Recently, artificial intelligence-fuelled demand has helped to bolster its profits.
In February, the company raised its operating profit forecast for the fiscal year that ended in March to 29.6 billion yen (S$239.8 million), up from the previous projection of 26.9 billion yen.
The company’s price-to-book ratio stands at 6.39, significantly higher than the average of 1.64 for the chemical sector on the Tokyo Stock Exchange.
Its share price has more than doubled since May 2025, before reports of the acquisition surfaced. Over the same period, the Nikkei 225 Index rose by about 52 per cent. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
