EQT is considering a takeover of Kakaku.com, people familiar with the matter said, as private equity-led deals bloom in Japan.
The Swedish buyout firm is working with a financial adviser to evaluate an offer for Tokyo-listed Kakaku, the people said, asking not to be identified because the information is private.
Kakaku¡¯s shares jumped 9.2%, the biggest intraday gain since Dec. 26.
Prior to Thursday¡¯s report on EQT¡¯s considerations, Kakaku¡¯s shares had dropped 7% this year, giving the internet company a market value of about $2.7 billion. That subsequently rose to $2.9 billion.
Established in 1997, Kakaku operates web services including price comparison, job searches and restaurant bookings and reviews.
Deliberations are ongoing and may not result in a bid, the people said.
A representative for EQT declined to comment.
Last year was a record for deals involving Japanese companies, and private equity firms have played a significant role. That¡¯s rolled into this year, with KKR saying recently it plans a tender offer for Taiyo Holdings valuing the chemicals maker at about ?500 billion ($3.1 billion). In the first quarter, Elliott Investment Management reached an agreement to privatize Toyota Industries in a transaction valuing it at ?6.7 trillion.
There could be some hurdles, too. Makino Milling Machine said Thursday the Japanese government has asked private equity firm MBK Partners to cancel its planned acquisition due to national security concerns.
EQT raised $15.6 billion for its latest private equity Asia fund, the largest pool of capital ever assembled for the region, as investors look beyond the U.S.
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