Blackstone, the U.S. investment firm, plans to acquire the Japanese e-comic and IT services company Infocom. This would be the firm's largest private equity deal in Japan.
Blackstone announced that its funds and vehicles will launch a takeover bid for the shares of Infocom, a subsidiary of the Japanese chemical conglomerate Teijin. The Blackstone units will spend 141.39 billion yen (896.4 million US dollars) to acquire a 42% stake from shareholders, which corresponds to a price of 6,060 yen per share.
Additionally, Infocom will use funds from Blackstone to repurchase the remaining 58% of the shares held by Teijin. Teijin's 31.76 million shares are valued at 134.38 billion yen at the repurchase price of 4,231 yen per share. The offer period runs from June 19 to July 31.
This planned acquisition is Blackstone's third private equity investment in Japan in the past six months. Atsuhiko Sakamoto, head of Blackstone's private equity business in Japan, emphasized: "This is a continuation of our commitment to invest in high-quality, growth-oriented companies in Japan and to develop them into market leaders.
The Board of Directors of Infocom Supports Blackstone's Plan and Recommends Shareholders to Tender Their Shares. Infocom's Shares Closed 5.1% Higher at 6,030 Yen on Tuesday, Before the Takeover Offer Announcement. Infocom's Share Price Has More Than Doubled Since the Beginning of the Year Following Media Reports of a Potential Takeover.
In the fiscal year that ended in March, Infocom's net profit increased by 85% to 6.61 billion yen, while revenue grew by 20% to 84.45 billion yen. The company's comic and consumer technology business generates more than two-thirds of the operating profit. Infocom's Mecha Comic platform is one of the leading providers of online comics in Japan and is particularly popular among female readers.
Teijin announced in May that it would review strategic options for unprofitable or non-core business areas to invest in growth and reward shareholders. In addition to its IT business, which generates the smallest share of revenue, the chemical company also operates materials, fibers, and healthcare businesses.
This acquisition marks an important step for Blackstone and could further strengthen Infocom's market position, while Teijin advances its strategic realignment.
