Akatsuki said on 13 May that it would launch a tender offer for Sunny Side Up Group at ¥1,320 a share, the first step in combining the mobile games developer with the Tokyo public relations group.
Why Akatsuki Inc. is buying SUNNY SIDE UP GROUP Inc.
The companies said Akatsuki's digital technology, IP expertise and investment capacity combined with Sunny Side Up's value-enhancement know-how and social capital would support growth as an integrated IP trading company.
Deal terms and financing
Sunny Side Up's board supported the offer and recommended that shareholders tender. Akatsuki secured ¥15.44bn of bank loans and a ¥7.59bn commitment line from Mizuho Bank, subject to leverage and net-asset covenants, and said it would also buy back up to 2.6m of its own shares.
Regulatory approvals and timing
The offer succeeded with about ¥12.42bn paid for shares and stock acquisition rights, giving Akatsuki 63.42% of the voting rights; Sunny Side Up became a consolidated subsidiary on 1 July. Akatsuki plans a squeeze-out to take full ownership, after which Sunny Side Up will be delisted from the TSE Standard Market.
Market context
After the integration Akatsuki plans to rename itself Sunnys Holdings (tentative), with Sunny Side Up president Etsuko Tsugihara and Akatsuki chief executive Tetsuro Koda as co-representative directors.
