Axium Capital strongly objects to the undervaluation of CEホールディングス in connection with the tender offer and calls for a broad market check. It is calling for competing proposals from Hikari Tsushin Group and others, subject to certain conditions, with a competing tender offer required to be made at ¥1,700 or more per share.
Singapore-based Axium Capital, a major shareholder of CEホールディングス, has stated that the going-private transaction by NIC and others significantly undervalues the company, called for a fair process, and strongly urged a transparent market check.
Regarding the tender offer, which is proceeding with CEHD's support as part of the proposed going-private transaction, Axium has pointed to what it considers an unjustified valuation. As a potential competing measure, it has indicated that, if potential buyers emerge, it will provide them with an opportunity to conduct due diligence so that they may, subject to certain conditions, participate in a competing tender offer involving existing major shareholder Hikari Tsushin Group.
The specific offer terms cited are a current tender offer price of ¥1,650 per share and a requirement that any competing tender offer be made at ¥1,700 or more per share. Axium says it will call on the CEHD board of directors and the special committee to take appropriate action to ensure market fairness and adequate consideration.