Bain Capital extends deadline for Japan’s Nichiigakkan bid for second time

A reporter raises his hand to ask a question during a news conference by Bain Capital LP Managing Director Sugimoto in Tokyo

TOKYO (Reuters) – U.S. buyout fund Bain Capital said on Thursday it had extended its deadline for a $1 billion buyout offer for Japanese nursing home operator Nichiigakkan Co for a second time.

Bain’s bid to buy all of Nichiigakkan’s shares has been extended to Aug. 3 from Thursday as the company’s stock is trading above Bain’s offer of 1,500 yen per share.

Bain, which launched the bid in May, last month extended the deadline to Thursday from June 22.

Nichiigakkan trades close to 1,600 yen in Tokyo, valuing the company at 116 billion yen ($1.08 billion).

Hong Kong-based investment fund Lim Advisors has said Nichiigakkan’s fair price is around 2,400 yen per share. It has said Bain’ offer “substantially” undervalued thecompany and appeared to take advantage of COVID-19 relatedweakness in the share price.

($1 = 107.2700 yen)

(Reporting by Junko Fujita. Editing by Gerry Doyle)