Taiyo Pacific Partners LP (“Taiyo”) has joined Roland CEO Junichi Miki to conduct a management buyout (“MBO”) of Roland for ¥42.6 billion Yen (about $420 million US dollars).
Here’s what Taiyo has to say about the planned buyout:
As a friendly, long-term shareholder, Taiyo has sought to provide management with analysis and support in their efforts to increase corporate value. However, the current business environment led Roland CEO Junichi Miki to reach out to Taiyo to discuss the idea of conducting an MBO. He was concerned that he needed to be able to quickly and effectively achieve some fundamental changes necessary at Roland.
We agreed with his assessment and are honored to join him in his desire to rebuild this great brand. Taiyo believes that this MBO offers current shareholders an opportunity to sell their shares at a premium and avoid the volatility risk associated with the transformation efforts. Today, Roland’s Board of Directors passed a resolution to endorse the tender offer and recommend that shareholders tender their holdings.
Brian K. Heywood, Chief Executive Officer and Managing Partner of Taiyo Pacific Partners, commented, “This transaction will enable Roland and current management to build a foundation for long-term strategic growth. I believe that President Miki is a strong leader that can make strategic and difficult decisions. We will be fully supporting his efforts. Roland has a dedicated team of management and employees, and an innovative DNA instilled from its founding. We hope to see Roland enhance its status as a global leader in digital musical instruments, and truly become a world-class company.”
Overview of the Roland MBO
- Target company: Roland Corporation
- Offerer: Tokowaka Corporation?Taiyo Jupiter Holdings, L.P. 100% ownership?
- Offer price: ¥1,875
- Offer period: Thursday, May 15, 2014 through Wednesday, June 25, 2014 (30 business days)
- Shares targeted: No upper limit. Lower limit: 14,798,500 shares (66.67% of shares outstanding.)