EQT lifts Kakaku offer to $4.2bn as investor's H1 profits rise

(Sharecast News) - Shares in EQT surged in Stockholm on Friday after the Swedish investment firm surpassed analysts' estimates with its first-half profits and raised its takeover offer for Japanese website operator Kakaku.com. EQT, as part of a consortium with Kakaku shareholder Digitial Garage, is now offering JPY3,450 a share for Kakaku, up from a previous bid of JPY3,000, topping a rival offer of JPY3,384 from a SoftBank-Bain Capital consortium.

The new offer values Kakaku, known for its price comparison site, at JPY682bn ($4.2bn), and includes a "reasonable premium" according to EQT.

"Following developments in the process and further careful consideration, the consortium decided to increase the tender offer price in order to further enhance execution certainty and reflect its continued conviction in the company's long-term potential," EQT said.

The higher bid complicates matters for Kakaku, whose 19.5% shareholder Oasis had already agreed to tender its shares to Bain and SoftBank subsidiary LY Corp. However, the consortium has indicated its offer could rise to JPY3,500 a share if another major shareholder, KDDI, also supports its bid.

The news came alongside EQT's interim results, which showed that adjusted EBITDA rose to €837m in the first half from €806m the year before, smashing the €772m expected by analysts.

The beat was mainly due to higher earnings from carried interest and investment performance.

According to the company, all of its main funds are performing in line with or above expectations, and the investment pipeline remains strong.

EQT shares were up nearly 12% at SEK320.30 by 1017 BST.