MBK Partners to Acquire Japan’s ‘Ajungdang’ with Activist Fund, Betting KRW 320 Billion [fn Market Watch]

[Financial News]   MBK Partners plans to acquire Japan-based household-services platform Sharing Technology for approximately KRW 320 billion. The company connects customers with local providers online for services ranging from lock replacement and pest control to home repairs. Its business model is similar to Ajungdang, a Korean household-services platform.
The deal is drawing particular attention because MBK Partners plans to take private a listed company whose largest shareholder is a United Kingdom-based activist fund through a tender offer. The move is seen as a bolt-on strategy to expand its household- and senior-services value chain by combining the company with its existing Japan portfolio.
According to Japan’s investment banking industry and major local media outlets on the 9th, MBK Partners is expected to launch a tender offer for Sharing Technology, which is listed on the Tokyo Stock Exchange, in the near future. The transaction is estimated at approximately 37 billion yen, or about KRW 320 billion, with some observers suggesting the value could be higher depending on exchange rates. 
Through services such as “Life 110,” Sharing Technology connects local providers with customers seeking household services, including lock replacement, pest control, electrical work and home repairs.
A key point of interest in the deal is the exit of Asset Value Investors Limited (AVI), the United Kingdom-based activist investment firm and largest shareholder.
AVI, which held approximately 28% as of March, is reportedly expected to participate in the tender offer. This creates a structure in which an activist fund’s equity investment leads to a global private equity firm’s acquisition of management control.
MBK Partners is expected to take the company private after the acquisition and focus on its medium- to long-term growth. For the fiscal year ending in September, Sharing Technology is projected to post revenue of 9.8 billion yen and net income of 2.5 billion yen, up 14% and 77%, respectively, from the previous year.
HITOWA, owned by MBK Partners, has offline household-services infrastructure spanning housekeeping, caregiving and senior life care. Adding Sharing Technology’s online customer acquisition and matching capabilities is therefore expected to create synergies.
“Japan is a market with strong demand for the digitalization of household-services providers due to its aging population and labor shortages,” an investment banking industry source said. “For MBK Partners, the acquisition was likely attractive not only because of Sharing Technology’s standalone growth potential, but also because it can be connected with its existing household-services portfolio.” 
Meanwhile, after acquiring Japanese aluminum-can and materials company Altemira Holdings for more than KRW 1 trillion in June, MBK Partners is expanding its investment focus to household-services platforms and accelerating its push into the Japan market.


[email protected] Reporter Kim Kyung-ah Reporter