Works Application To Go Private Via MBO

Works Application Co., Ltd. a well-run package software developer and maintenance provider, announced that Works Appli. supported the takeover bid by WPK Holding Inc., an investment firm set up by the current managements and a JV between Polaris Capital and K&C. Polaris is a middle market buyout firm and K&C is a Tokyo-based buyout firm, whose CEO used to be an outside director of Works. The TOB price is set at 55,000 yen, a 43% premium over a 6-month average. The total proceeds for acquiring all outstanding shares will equate to JPY 25.5 billion. Bank of Tokyo-Mitsubishi UFJ will lend up to JPY 17.1 billion. Works Application reported a revenue of JPY 21 billion with an operating profit of JPY 1,444 million for the FY ending June 2010 and a revenue of JPY 11 billion and an operating profit of JPY 914 million for the 6 month period ending December 2010.