Bain Capital said to seek JPY90bn Showa Aircraft Industry buyout from Mitsui E&S

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Bain Capital is reportedly making a move to buy Japanese aircraft and transportation product maker Showa Aircraft Industry from Mitsui E&S Holdings in a JPY69.4bn ($633m) deal.

Showa spent much of last year with shares valued at between JPY1,300 and JPY1,400 each, but has seen its share price soar since November to reach about JPY2,530 on January 23.

Bain Capital’s potential offer, which was reported by Reuters, values Showa at JPY2,129 per share. It added that shareholders would receive an additional JPY631 if they tender their shares, which makes the entire deal worth JPY90bn.

Mitsui E&S has agreed to sell all of its shares in Showa Aircraft, which accounts for just over 65.5 per cent of the company, Bain said in a statement. It aims to buy at least 66.67 per cent of the outstanding shares.

Reports emerged last summer that Bain Capital was in talks with investors to raise its first buyout fund dedicated to the Japanese market.

Bain plans to target mid-sized Japanese businesses through the vehicle according to Bloomberg, which cited unnamed sources it said had knowledge of the matter.

The Showa offer comes in the wake of a pair of hefty Japanese deals from the firm, which led a consortium in the $18bn buyout of Toshiba’s memory chip business in May 2018 and sealed the $1.4bn buyout of advertising business Asatsu-DK seven months later.

Bain’s recent Japan activity has been powered by its latest Asia fund, which hit a $4.65bn final close towards the end of last year.

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