March 25, 2015

Bain Takes Private Japan Wind Development Together With Its President

It was reported that Bain Capital plans to acquire Japan Wind Development, Japan's third-largest wind power company listed on Tokyo Stock Exchange, through a tender offer.  Bain will establish a company jointly with the current president of the target company each owning equal voting rights and the company will offer 580 yen ($4.76) for each of Japan Wind Development's shares, a 30% premium over the average share price of the last 3 months. If all outstanding shares are acquired , it will cost JPY 9.7 billion (USD 80 million).

Japan Wind Development has approx. JPY 40 billion liability. According to the filing documents, the company expects refinancing of its debt and hopes Bain's participation will help enhance its credit.

Last year, the Financial Services Agency ordered Japan Wind to pay fines for accounting irregularities. The company has since filed a suit, seeking to repeal the decision.

An outsider would wonder if Bain should have insisted on the majority ownership of the company in this transaction.


1 comment:

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