KKR to Privatize Taiyo Holdings in 3.3 Billion Dollar Deal
KKR plans to launch a 528.56 billion yen tender offer to privatize Japanese chemical maker Taiyo Holdings. The deal has secured support from major shareholders.
Global investment firm KKR & Co. Inc. has announced its intention to privatize Taiyo Holdings Co., Ltd. through a tender offer valued at approximately 528.56 billion yen ($3.33 billion). The firm is offering 4,750 yen per share for the Japan-based chemical manufacturer, representing a 4.7% discount to the company's most recent closing price.
The privatization effort has already secured significant backing from major stakeholders. DIC Corporation, Kowa Co.,Ltd., and Oasis Management have collectively pledged their support, representing a combined 42.2% of the outstanding shares in Taiyo Holdings. KKR has formalized agreements with DIC and Kowa—the latter being an asset manager associated with the founding family—to facilitate the sale through a subsequent share consolidation and buyback process once the tender offer concludes.
As part of the strategic transition, the founding family of Taiyo Holdings intends to re-invest in the KKR-managed investment vehicle that will eventually own the chemical firm. Additionally, Oasis Management has entered into a specific agreement to tender its stake, which accounts for nearly 15.62% of the total outstanding shares. This move marks a significant shift for the Japanese chemical sector as private equity firms continue to seek opportunities for restructuring and growth within the region.
