KakakuCom Inc saw its stock spike on Wednesday following an announcement from Swedish private equity firm EQT that it intends to launch a tender offer to take the Japanese online classifieds company private.
Shares of Kakaku rose 17% to ¥3,425.0, marking the strongest trading level for the company since late 2021.
EQT's proposal places a value on Kakaku of approximately ¥593.51 billion, equivalent to about $3.76 billion, and proposes a purchase price of ¥3,000 per share.
The firm said the company's board of directors and a special committee had given their support to the tender offer. EQT also disclosed that it reached an agreement with two of Kakaku's major shareholders - Digital Garage and KDDI - covering their combined 38.1% stake in the company.
Kakaku operates a range of digital services in Japan, including a classifieds platform and Tabelog, an online restaurant review and reservation service.
The proposed transaction is the latest in EQT's series of deals in Japan; the firm previously pursued privatizations of Fujitec, CareNet and Mamezo. EQT's move into Kakaku comes amid a broader wave of private equity activity in Japan driven by corporate reforms that have put emphasis on shareholder returns.
Market participants responded immediately to EQT's filing, sending Kakaku's shares sharply higher as investors re-priced the stock in light of the acquisition proposal and the reported support from the company's board and major shareholders.
Details on next steps and timelines for the tender offer were not provided in the announcement. The company and EQT disclosed the valuation, the per-share offer price, and the arrangements with major shareholders, but further procedural or scheduling information was not included in the statement.
This development adds to the list of high-profile buyout attempts in Japan and highlights continued private equity interest in the country.