Asia Flash: Effissimo may give Bain-backed Nichii Gakkan buyout bumpy ride amidst local and global nursing care consolidation

Shares in healthcare and education business Nichii Gakkan are trading above the JPY 1,500 p/s (JPY 98.8bn or USD 929.9m equity value) 8 May Bain Capital backed management buyout proposal, suggesting the deal faces hurdles from Effissimo Capital Management, the Singapore-based activist shareholder, which has a potential blocking stake.

Shares in healthcare and education business Nichii Gakkan are trading above the JPY 1,500 p/s (JPY 98.8bn or USD 929.9m equity value) 8 May Bain Capital backed management buyout proposal, suggesting the deal faces hurdles from Effissimo Capital Management, the Singapore-based activist shareholder, which has a potential blocking stake.

The agreed offer, which was revised three times from a JPY 1,300 p/s starting price tabled on 7 April, represents a 36.4% premium over the undisturbed price of JPY 1,100 p/s on 28 April and values Nichii Gakkan at 10.53x TTM EV/EBITDA and 2.24x book value of JPY 668.7p/s as of year ended 31 March 2020.

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By Vivian Wong