Hong Kong-based hedge fund Oasis Management has taken a stake in Japanese car care products maker Soft99 Corp, joining a heated dispute between management and activist shareholders over a proposed buyout, according to a report by Bloomberg.
Soft99’s stock rose as much as 5.3% after reports of Oasis’s involvement. The company is currently the target of a management-led buyout (MBO) led by President Hideaki Tanaka, offering JPY2,680 ($16) per share, following an initial proposal of JPY2,465.
Activist investor Effissimo Capital Management has launched a competing tender offer at JPY4,100 per share, arguing the management bid undervalues the business. Effissimo has since extended its offer deadline to 13 November.
Oasis CIO Seth Fischer criticised Soft99’s independent review committee for backing the lower MBO price, calling the process “a shameful experience.”
Soft99 shares have gained 166% year-to-date, trading as high as JPY4,000 on Wednesday.
