Fujitec Co Ltd: EQT to Launch $2.7 Billion Tender Offer

Tokyo-based industrial company Fujitec Co Ltd, known for its manufacturing of elevators, escalators, and sky-parking systems, is set to be taken private by European investment firm EQT. The tender offer, valued at $2.7 billion, aims to acquire 85% of Fujitec’s shares, effectively removing the company from the Tokyo Stock Exchange.

Tender Offer Details

EQT plans to offer 5,700 yen per share, a price that has led to a significant drop in Fujitec’s share price. On the announcement day, Fujitec’s shares fell by as much as 9.7%, marking the steepest decline in over seven years. This drop reflects the offer’s discount compared to Fujitec’s most recent closing price of 6,205 yen.

Strategic Implications

The acquisition is expected to be financed through EQT’s BPEA Private Equity Fund IX. Post-acquisition, EQT intends to support Fujitec’s growth by working closely with its management to enhance operational efficiencies. The move is seen as a strategic effort to streamline operations and potentially expand Fujitec’s global footprint, given its manufacturing bases in the USA, Singapore, Taiwan, and South Korea.

Market Reaction

The market has reacted to the news with a notable decline in Fujitec’s stock value. The tender offer, while substantial, is below the company’s 52-week high of 6,472 yen, which was recorded on March 25, 2025. This has raised concerns among investors about the valuation and future prospects under private ownership.

Ownership Structure Post-Acquisition

Upon successful completion of the tender offer, EQT will hold an 85% stake in Fujitec, with the remaining 15% expected to be retained by Fujitec’s founding family. This ownership structure aims to maintain a degree of continuity and legacy within the company.

Conclusion

EQT’s move to privatize Fujitec marks a significant shift for the Japanese industrial company. While the tender offer presents a strategic opportunity for growth and operational enhancement, it also poses challenges in terms of market perception and valuation. Stakeholders will be closely monitoring the developments as the tender offer progresses.