Kadoya Sesame Oil, known for its "junsei goma abura" pure sesame oil, has extended a tender offer from the investment fund Integral to November 13 after a counterbid, Bunshun Online reported, in a contest that has pulled in trading houses Mitsubishi Corp. and Mitsui & Co.
The company kept its offer price at ¥2,514 a share. Advent Partners, the fund making the counterbid, has set a maximum of ¥3,000 a share. Whether Integral raises its price is now the focus, a banking source told the outlet.
The tussle began around September last year, when a major food manufacturer approached Kadoya about a takeover, according to the report. The founding family, working with Integral, responded by proposing to take the company private.
The family held 15.87% of shares through asset management companies and other holdings at the end of March, effectively the third-largest shareholder. The offer price at that stage was ¥1,514 a share.
Trading houses back a rival bid
Mitsubishi Corp. is the top shareholder with 26.3%, and Mitsui & Co. is second with 21.4%. A president from the founding family stepped down in 2019, since when Mitsui alumnus Atsushi Kume, now chairman, and Mitsubishi alumnus Junichi Kitagawa, now president, have led the company.
Both trading houses asked that Advent be added as a candidate buyer. A major shareholder long seen as a shield against acquirers instead hunting for a new buyer and prompting a wider contest is unheard of, a market source told Bunshun Online.
Bunshun Online reported further details of Kadoya's earnings and the risks behind them, and of the reasons the battle between the founding family and Mitsubishi and Mitsui is expected to intensify, citing market sources.