It is reported that MBK Partners, a private equity fund (PEF) management company, is pursuing the acquisition of the Japanese machine tool manufacturer Makino Milling Machine.
Nihon Keizai Shimbun (Nikkei) reported on the 27th that among several investment funds that proposed buying shares from Makino Milling Machine, MBK has gained exclusive negotiation rights.
MBK aims for an acquisition through a tender offer (TOB), with the share price expected to be above 11,000 yen (approximately 105,000 won).
Previously, Japan's motor manufacturer NIDEC attempted a hostile merger and acquisition (M&A) of Makino Milling Machine and had initiated a tender offer at 11,000 yen per share since April. It was estimated that if NIDEC purchased all shares of Makino, the acquisition amount would exceed 250 billion yen (approximately 2.4 trillion won).
However, NIDEC withdrew its tender offer this month as the response from Makino Milling Machine was not favorable. Meanwhile, the amount of the tender offer that MBK will pursue is still unknown.
Nikkei noted, "It is still fluid whether Makino's management will ultimately agree to MBK's acquisition proposal," adding that "if other competing funds present a more favorable acquisition proposal, there is a possibility of changing negotiation partners."
Last year, MBK also acquired the Japanese pharmaceutical company Arinami Pharmaceutical, which produces vitamins, for approximately 350 billion yen from the American investment funds Blackstone.