UPDATE 1-Oaktree to make firm bid for Jakks Pacific
April 17 |
April 17 (Reuters) - Oaktree Capital Management Funds said it will make a firm offer for Jakks Pacific, after being repeatedly spurned by the toymaker, and may seek to replace the company's board.
The private equity firm said in a letter to the company's board that Jakks missed its revenue and profit projections made after its initial offer by a wide margin and the management has adopted a poison pill to thwart any takeover attempt.
"Oaktree has no confidence in the capability and credibility of the current Board and management team. Immediate change is required to preserve and protect the interest of public shareholders," the investment firm said in its letter.
Oaktree, which had made an unsolicited bid of $20 per share in September, said the share price had dipped to $13.39 since the offer.
Oaktree, which owns about 5 percent of Jakks, said it will fund the deal with a combination of equity and debt. Guggenheim Partners will provide the debt required, it said.
Shareholder Clinton Group Inc, which owns about 2.4 percent of Jakks' common stock, too had asked the company's board in March to put itself up for sale.
Jakks Pacific shares have lost about 8 percent of their value since September. They closed at $17.95 on Tuesday on the Nasdaq.
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