Japanese cement maker Asahi Danke Co. said Tuesday its management team will take the company private through a tender offer. A special purpose company set up for the management buyout will purchase each Asahi Danke share for 450 yen through the tender offer starting Wednesday and ending Feb. 1, with the aim of acquiring a 66.7 pct stake. The acquisition is estimated to cost slightly over 1.5 billion yen, the company said.
Asahi Danke’s share price closed Monday’s session at 296 yen on the Jasdaq Securities Exchange, with no shares changing hands on Tuesday. The management team plans to purchase all remaining shares to take full control of the firm.
Asahi Danke, based in Asahikawa in the northernmost prefecture of Hokkaido, has faced an uphill battle in its mainstay cement business because of cutbacks in public works spending. The MBO is designed to speed up restructuring and capital investment.