Private equity firm MBK Partners will participate in a tender offer to take Japan's rental housing management company Leo Palace 21 private.
MBK Partners announced on September 15 that it is joining Hikari Tsushin and a subsidiary of NEC Capital Solutions in the tender offer for Leo Palace 21.
The acquisition will be conducted through a special purpose company (SPC) established by the three firms, with a total investment of up to 267.6 billion yen (approximately 3.3 trillion won).
Hikari Tsushin will hold a 34% stake in the SPC, while MBK Partners and NEC Capital Solutions will each own 33%.
The tender offer price is set at 1,000 yen per share, representing a premium of about 45% over Leo Palace 21's closing price of 691 yen the previous day.
The tender offer will run from today until the end of next month, with a minimum purchase requirement of 48.56% of the issued shares for the offer to be valid.
If successful, Leo Palace 21 is expected to hold an extraordinary shareholders' meeting as early as January next year to initiate the delisting process.
This transaction aligns with MBK Partners' special situations (SS) investment strategy in Japan, which seeks opportunities in companies that are undervalued due to restructuring, market changes, or capital structure adjustments. MBK Partners operates a separate SS strategy focused on South Korea, Japan, and China.
Additionally, MBK Partners has recently intensified its investments in Japan, having launched a tender offer on September 10 for the acquisition of Sharing Technology, a platform for daily living services.
* This article has been translated by AI.
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