WASHINGTON (dpa-AFX) - Global investment firm KKR & Co. L.P. (KKR) said that HK Holdings Co., Ltd. or the 'Bidder', an entity owned by investment funds controlled by KKR, plans to make a tender offer for all the existing common shares and stock acquisition rights of leading power tool and life science equipment manufacturer Hitachi Koki Co., Ltd. The total number of Hitachi Koki's common shares is equal to 101.43 million, this transaction values Hitachi Koki at JPY 147.1 billion or about US$1.28 billion.
In connection with the tender offer, the Bidder has entered into a tender agreement with Hitachi Ltd., the lead shareholder in Hitachi Koki, to acquire in the tender offer Hitachi's approximate 40.25% holding of Hitachi Koki's common shares, and also with Hitachi Urban Investment, Ltd. or ('HUI' to acquire in the tender offer HUI's approximate 10.90% holding of Hitachi Koki's common shares.
The tender offer is expected to commence on January 30, 2017.
Hitachi Koki is a supplier of high performance, high quality power tools and life science equipment, competing in the global marketplace to introduce cordless technology to a wider range of power tool products and applications.
As per the terms of the announced offer under Japan's Financial Instruments and Exchange Act, among other terms, the Bidder will commence the tender offer to acquire the issued common stock and stock acquisition rights of Hitachi Koki. In addition, based on the Bidder's proposal, Hitachi Koki plans to pay a special dividend conditional upon the success of the tender offer, with a record date of January 29, 2017. The Bidder has set a value of Hitachi Koki common shares of JPY 1,450 per common share. Assuming the payment of the Special Dividend of JPY 580 per common share upon the success of the Tender Offer, the Bidder has set a tender offer price per common share of JPY 870. The tender offer price per Hitachi Koki stock acquisition right will be JPY 144,900.
The value per share represents a premium of 89.8% to Hitachi Koki's 12-month average closing price to October 4, 2016.
Since the total number of Hitachi Koki's common shares is equal to 101,429,921, this transaction values Hitachi Koki at JPY 147.1 billion or about US$1.28 billion.
Copyright RTT News/dpa-AFX