TOKYO, March 6 Four global asset managers with
stakes in Japanese cable service provider Jupiter
Telecommunications (JCOM) said the price of an ongoing
buy tender was set too low and needed to be raised.
Japan's KDDI Corp and Sumitomo Corp, which
together own about 75 percent, issued a tender in October to buy
the remaining outstanding shares of JCOM in a move to merge the
companies' cable businesses.
The tender offer price was raised to 123,000 yen per share
last week from the original offer price of 110,000 yen in
October. The tender is set to close on April 10.
Four asset management companies - Beach Point Capital
Management, Neuberger Berman, Owl Creek Asset Management and
P.Schoenfeld Asset Management - are still not satisfied,
expressing their disappointment in a letter sent to JCOM's board
of directors on Wednesday.
The four companies, which collectively hold 5.5 percent of
JCOM, said the price remained far below the 139,500 yen per
share that Sumitomo and KDDI paid in 2010 to obtain control of
the cable service provider.
Based on its EBITDA (earnings before interest, tax,
depreciation and amortisation) at the end of December, the value
per share of JCOM should be at least 160,700 yen, they said.
In addition, the revised tender offer price did not reflect
a broader rise in Japan's Topix stock index, which has
surged more than 30 percent since October, they said.
"While we are pleased that the board (of JCOM) and its
advisers decided to renegotiate the tender offer price as we
requested, we are disappointed with the result," the four asset
managers said in the letter.
"The revised tender offer price remains grossly inadequate,
and the increase in the already unfair price represents less
than half of the 30 percent increase in TOPIX since the tender
offer was originally announced more than four months ago."
JCOM was not immediately available for comment.
JCOM shares closed 0.2 percent higher at 123,400 yen. JCOM
shares were around 82,700 before the buy tender deal was
announced in October.
(Reporting by Chikafumi Hodo; Editing by Helen Massy-Beresford)