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JUNE 2008 W3 SPECIAL ALERT RHJI, Saying It’s Moving on to Bigger and Better Things, Divests D&MAfter months of “no comment” RHJI picks Bain/Kenwood for D&M<BREAKING NEWS: June 20, 2008>After months of “no comment” RHJ International SA announced today that it has reached an agreement with K.K. BCJ-2 to tender its 49% stake in D&M Holdings Inc. for a takeover bid by the Bain Capital Partners, LLC-led consortium.
As reported yesterday in the ALERT (Bain Bursts to the Forefront of Bidders for D&M), Bain Capital had emerged as the leading contender with a comprehensive financing package of ¥70 billion (around $650 million) already arranged with several banks in Japan.
Bain is partnered with Kenwood Corp. which is currently in the process of completing their merger with Victor Corporation of Japan (JVC) in a process that is expected to be finished by October.
In a prepared statement RHJI’s Co-Chief Executive Officer Leonhard Fischer said this move will better address RHJI’s cash position to “pursue larger investment opportunities that will generate significant value in the future.”
Bain will offer ¥510 per share which represents a 37.1% premium over the average closing price of shares over the six months preceding June 19, 2008.
D&M Chairman and Chief Executive Officer Eric C. Evans commented, “…we believe that we will be better positioned as a privately held company to be more flexible in the fast-paced changing markets in which we compete.”
Bain has said that it intends to purchase 100% of all outstanding D&M Holdings shares and will launch their tender offer after executing a signed tender offer agreement.
What still remains to be determined is just how Kenwood will incorporate D&M brands into its expanding portfolio and how the ultimate corporate structure will be set. RELATED STORIES |
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