(April 23): EQT AB is considering a takeover of Kakaku.com Inc, people familiar with the matter said, as private equity-led deals bloom in Japan.
The Swedish buyout firm is working with a financial adviser to evaluate an offer for Tokyo-listed Kakaku, the people said, asking not to be identified because the information is private.
Kakaku’s shares jumped 9.2%, the biggest intraday gain since Dec 26.
Prior to Thursday’s Bloomberg News report on EQT’s considerations, Kakaku’s shares had dropped 7% this year, giving the internet company a market value of about US$2.7 billion. That subsequently rose to US$2.9 billion.
Established in 1997, Kakaku operates web services including price comparison, restaurant bookings and reviews, and job searches.
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Deliberations are ongoing and may not result in a bid, the people said.
A representative for EQT declined to comment.
Last year was a record for deals involving Japanese companies, and private equity firms have played a significant role. That has rolled into this year, with KKR & Co saying recently that it plans a tender offer for Taiyo Holdings Co, valuing the chemicals maker at about ¥500 billion (US$3.1 billion). In the first quarter, Elliott Investment Management reached an agreement to privatise Toyota Industries Corp in a transaction valuing it at ¥6.7 trillion.
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There could be some hurdles too. Makino Milling Machine Co said on Thursday that the Japanese government has asked private equity firm MBK Partners Ltd to cancel its planned acquisition due to national security concerns.
EQT raised US$15.6 billion for its latest private equity Asia fund, the largest pool of capital ever assembled for the region, as investors look beyond the US.
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