Global PE firm Carlyle withdraws bid for Japan Asia Group

Photo: Reuters

Global private equity firm Carlyle Group on Wednesday withdrew its bid to buy energy and environment firm Japan Asia Group (JAG) in a deal worth 48 billion yen ($459 million), as a Japanese activist fund beat its offer.

“The bid did not attract minimum shares needed to succeed so we are going to cancel the bid,” Caryle said in a statement.

Carlyle teamed up with JAG’s chairman and CEO Tetsuo Yamashita in November to launch a management buyout. But the activist fund backed by veteran investor Yoshiaki Murakami made a counterbid.

JAG shares surged following Carlyle‘s bid, and increased further after City Index Eleventh, the fund backed by Murakami, flagged a counterbid in mid-January, prompting Carlyle to raise its offer.

Carlyle‘s revised offer included 33 billion yen for JAG shares and a 15 billion yen cash payment for JAG businesses that Carlyle had planned to buy. The scheme also allowed the CEO to get control of the rest of JAG businesses for 2.5 billion yen.

City Index Eleventh, which built up a 20.5% stake in JAG, last week launched its own bid to buy the remainder at 1,210 yen per share, topping Carlyle‘s offer of 1,200 yen.

The investment arm had said Carlyle‘s offer was too low and allowed the CEO to gain significant benefit at the expense of minority shareholders.

JAG shares closed at 1,270 yen on Wednesday, more than double Carlyle‘s initial offer of 600 yen.

City Index Eleventh’s bid will run until March 22.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.