Forum Engineering has accepted a tender offer from KKR to privatize its shares, aiming to enhance talent acquisition, competitive advantage, and growth opportunities in India.

Target Information

Forum Engineering, listed as 7088, primarily specializes in the dispatch of engineers to the manufacturing sector. The company has accepted a tender offer (TOB) from the U.S. investment fund KKR to privatize its shares. With KKR's capital participation, Forum Engineering aims to address its management challenges by ensuring a steady supply of engineering talent, enhancing its competitive edge through advanced talent matching technologies, and facilitating aggressive investment for business expansion in India.

The acquisition will be executed through KJ003, a special purpose company established by a KKR subsidiary (located in Chiyoda, Tokyo). The purchase price is set at 1,710 yen per share, representing a 74.56% premium over the closing price of 1,275 yen prior to the TOB announcement. The planned number of shares to be purchased is 33,509,741, with a minimum purchase of 15,613,500 shares, corresponding to a 29.32% ownership stake. The total funds required for the TOB are approximately 57.3 billion yen.

Industry Overview

The staffing services sector in Japan, particularly within the engineering domain, has been experiencing consistent growth, bolstered by increased demand from various industries needing skilled labor. The cha