- KKR has become the largest shareholder in Japanese software developer Fujifilm after completing the first phase of a two-part takeover offer
- This US company acquired 21.4 million shares in Fujifilm and gained control of 90 per cent of the outstanding stock options
What happened
KKR announced on Thursday (November 7) that it has become the largest shareholder of Fuji Soft after completing the first stage of its two-part tender offer.
Through FK Co, an entity under its managed investment fund, KKR acquired a 35% stake in Fuji Soft. The American firm purchased 21.4 million shares of the company. And gained control over 90% of Fuji Soft’s circulating stock options. The second stage of the tender offer is scheduled for mid-November. The goal is to acquire the remaining shares at an unchanged price of 8,800 yen ($57.46) per share.
KKR Japan CEO Hiro Hirano said: “We believe that a stable, cohesive shareholder structure is in the company’s best interest. We look forward to leveraging KKR’s full suite of resources and network to help Fuji Soft achieve the next phase of its transformation.”
Also read: KKR acquires over a third of JAPAN’S FUJI SOFT amid takeover tussle with bain
Also read: KKR becomes largest shareholder in Fuji Soft after successful tender offer
What it’s important
KKR’s acquisition of a controlling stake in Fuji Soft reflects a broader trend of foreign private equity firms seeking to control Japan’s technology sector. This move is seen as a positive step. As foreign capital can inject innovation, improve efficiency, and open new markets for Japanese companies. The outcome of this bidding war could set a precedent for future deals in Japan’s tech industry. It could affect how foreign investors enter these markets.This kind of foreign involvement has occurred in other successful companies. For example, Silver Lake Partners bought a large stake in Japan’s Panasonic to help reshape its digital strategy and boost profitability.
However, such moves are not without controversy. Critics argue that foreign acquisitions could undermine Japan’s corporate culture and independence, especially for smaller companies with unique local values. For example, after Rakuten transferred much of its control to foreign investors, it faced significant challenges. That raises concerns about long-term stability. Larger corporations may benefit from external expertise. But small businesses can struggle to maintain their distinct local identities under pressure from foreign shareholders focused on returns.
