MBK Partners Launches Tender Offer for Leopalace21 in Japan

Establishment of SPC with Hikari Tsushin and NEC Capital

A 45% Premium Offered at 1,000 Yen Per Share

MBK Partners, together with Hikari Tsushin and a subsidiary of NEC Capital Solutions, is launching a tender offer to acquire Japanese rental housing management company Leopalace21. If the tender offer is successful, Leopalace21 will proceed with the delisting process.

According to the investment banking (IB) industry on September 15, the three companies, including MBK Partners, will acquire Leopalace21 via a jointly funded special purpose company (SPC), investing up to 267.6 billion yen. The shares of the SPC will be held with Hikari Tsushin owning 34%, and MBK Partners and NEC Capital Solutions each holding 33%.

The tender offer price is set at 1,000 yen per share, which is approximately 45% higher than the previous day’s closing price of 691 yen. The tender offer will be conducted from today until the end of next month, with the condition that more than 48.56% of the issued shares must be secured. If successful, Leopalace21 will hold an extraordinary shareholders’ meeting as early as January next year to begin the delisting procedure.

Leopalace21 suspended new orders in 2019 following revelations of construction defects in 2018 and fell into capital erosion in 2020. Subsequently, with support from the U.S. investment firm Fortress Investment Group, it underwent restructuring and resumed its core real estate development business in fiscal year 2025, restarting after about six years.

Last September, a Fortress affiliate sold part of its shares, making Hikari Tsushin Group the largest shareholder. With this acquisition, Hikari Tsushin plans to sell electricity and telecom services to Leopalace21 tenants and aims to increase tenant acquisition by utilizing its existing customer base. Approximately two-thirds of the around 540,000 rental housing units managed by Leopalace21 are under corporate contracts, such as company housing, which is expected to create synergy with Hikari Tsushin's corporate client base.

Previously, on September 10, MBK Partners also launched a tender offer for Japanese lifestyle-focused service platform Sharing Technology. The tender offer price is 1,550 yen per share, with a total acquisition value of about 37 billion yen. Once the tender offer is completed, Sharing Technology will also be delisted, and MBK Partners plans to link its business with Hitowa Holdings, an existing portfolio company that provides daily support services.

The acquisition of Leopalace21 is part of MBK Partners’ Japan Special Situations (SS) strategy. SS refers to a strategy that seeks investment opportunities in companies undervalued due to restructuring, changing market conditions, or capital structure adjustments, or in companies requiring business reorganization. MBK Partners is running this strategy primarily in North Asia, including Korea, Japan, and China.

This content was produced with the assistance of AI translation services.