U.S. Fund to Buy D&M for Up to 50.4B Yen

U.S. investment fund Bain Capital Partners LLC said Monday that it plans to spend up to 50.4 billion yen to take full control of Japanese audio equipment maker D&M Holdings Inc.
Bain Capital launched a tender offer the same day, planning to purchase at least 69.93 million D&M shares, or about 75 pct of the firm's total outstanding shares. The tender offer will be closed on Sept. 5. Bain Capital will buy the shares at 510 yen apiece.
U.S. investment fund RHJ International, D&M's top shareholder with a 49 pct stake, and Dutch electronics giant Royal Philips Electronics NV, the second largest holder with a 12 pct stake, are expected to sell their shareholdings in the Japanese company in response to the tender offer.
After the completion of the tender offer, Bain Capital plans to buy the remaining D&M shares. As a result, D&M will be delisted from the Tokyo Stock Exchange. D&M shares are now trading on the TSE's first section.
Following the acquisition, Bain Capital intends to reinforce D&M's audio equipment and car navigation system operations in cooperation with Kenwood Corp. which is set to integrate its businesses with Victor Co. of Japan in October, to help D&M better compete with major electronics makers. Bain Capital is in tie-up with Kenwood.U.S. investment fund Bain Capital Partners LLC said Monday that it plans to spend up to 50.4 billion yen to take full control of Japanese audio equipment maker D&M Holdings Inc.
Bain Capital launched a tender offer the same day, planning to purchase at least 69.93 million D&M shares, or about 75 pct of the firm's total outstanding shares. The tender offer will be closed on Sept. 5. Bain Capital will buy the shares at 510 yen apiece.
U.S. investment fund RHJ International, D&M's top shareholder with a 49 pct stake, and Dutch electronics giant Royal Philips Electronics NV, the second largest holder with a 12 pct stake, are expected to sell their shareholdings in the Japanese company in response to the tender offer.
After the completion of the tender offer, Bain Capital plans to buy the remaining D&M shares. As a result, D&M will be delisted from the Tokyo Stock Exchange. D&M shares are now trading on the TSE's first section.
Following the acquisition, Bain Capital intends to reinforce D&M's audio equipment and car navigation system operations in cooperation with Kenwood Corp. which is set to integrate its businesses with Victor Co. of Japan in October, to help D&M better compete with major electronics makers. Bain Capital is in tie-up with Kenwood.