Dalton Investments Proposes Friendly Management/Employee Buyouts of Fujitec and Nippon Fine Chemical.TOKYO & LOS ANGELES Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. -- Dalton Investments LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control announced that it met earlier today with the managements of Fujitec Co., Ltd. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 6406) and Nippon Fine Chemical Co., Ltd. (TSE: 4362) to propose friendly management and employee buyouts (MEBO) of each company. Dalton is offering to purchase all outstanding Fujitec shares for 900 yen (US$ 7.60) per share, a 10.6% premium over Monday's (April 23, 2007) closing price. With approximately 93.6 million shares outstanding, the total value of the offer is approximately 84 billion yen (US$ 711 million). For Nippon Fine Chemical, Dalton is offering to purchase all outstanding shares for 900 yen (US$ 7.60) per share, a 12.2% premium over Monday's (April 23, 2007) closing price. With approximately 26 million shares outstanding, the total value of the offer is approximately 24 billion yen (US$ 197 million). James B. Rosenwald, founder and managing partner of Dalton Investments and head of the firm's Japanese management buyout Management buyout (MBO) Leveraged buyout whereby the acquiring group is led by the firm's management. management buyout See going private. strategy, said, "Our friendly MEBO proposals offer current shareholders the opportunity to sell their shares at a fair price while allowing each company to reorganize re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. without the pressures associated with being public companies." Mr. Rosenwald added, "We believe Fujitec should take some bold steps, such as divesting unprofitable operations and seeking an alliance with a global partner, to enhance its corporate value, while Nippon needs to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. non-core businesses and increase management ownership in order to align shareholder and management interest." The rationale and terms of each proposal were outlined in a letter to each company and presented to the managements during the meeting. Dalton started investing in each company in 2004 and currently holds 14.3 million shares (15.3%) of Fujitec and 3.8 million shares (14%) of Nippon Fine Chemical. Dalton Investments is a registered investment advisor Registered Investment Advisor (RIA) is a designation obtainable in the United States by an individual who has registered with the U.S. Securities and Exchange Commission or state regulatory agency (where the primary business is situated or multiple States in some cases) in with the Securities and Exchange Commission. The firm currently has $1 billion in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. and serves institutional and private clients. Dalton offers six investment strategies, including Japanese management buyouts, Japan equity long-only, Japan equity long/short, Greater China equity long/short, global small-cap equity long/short and global large-cap equity long/short. For more information or copies of the Fujitec and Nippon letters, please contact: Steve Rose Hullin Metz & Co. steve@hmcllc.com 212-752-1044 (O) 917-822-2892 (M) 203-329-8856 (H) |
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