Nikkon Holdings Opens Second Bidding Round to Go Private

Nikkon Holdings Co. will conduct a second round of bidding in the first half of September to facilitate a transition to a private company. The process follows the appointment of a special committee of outside directors and financial advisers in May, with a first round of bidding completed in June.

US-based investment firms Bain Capital LP and Lone Star Funds are currently considering proposals after advancing through the initial stage. However, a significant rally in Nikkon shares may complicate the acquisition. The company's market capitalization has reached ¥665 billion ($4.2 billion), with shares climbing more than 50% this year.

This price surge creates a risk that second-round bids could fall below current market valuations, which might discourage shareholders from tendering their shares. To enhance potential returns and attract bidders, Nikkon has indicated it will sell off non-core real estate assets, including shipment facilities.