Eneos, Goldman to launch tender offer in $4.2b Nippo deal

Japan’s Eneos Holdings and Goldman Sachs on Thursday moved ahead with a tender offer for the 43 per cent the refiner doesn’t already own in roadbuilder Nippo Corp, shrugging off opposition from activist Oasis Management to a deal that values all of Nippo at more than $4 billion.

Nippo said in a statement that its board had agreed to the bid, and Eneos and Goldman will start a tender for shares on Friday that will run to Dec. 24.

Hong Kong-based Oasis, which has a 4.5 per cent stake in Nippo, says the price, valuing Nippo at about at 476.4 billion yen ($4.2 billion), is too low and earlier this week said it had received assurances from Eneos, Japan’s biggest refiner, and Nippo that they were open to alternative bids.

Eneos President Katsuyuki Ota addressed that assertion on Thursday, speaking at an earnings conference shortly before Nippo issued its statement. Eneos and Goldman first announced in September they planned to take Nippo private.

“Some shareholders have suggested that the ... price should be higher and we are communicating with them, but in the end, it is up to the independent committee of Nippo and the board committee to decide,” Ota said.