European investment firm EQT to take Japan's Fujitec private for $2.7 billion

TOKYO (Reuters) -European investment firm EQT will launch a $2.7 billion tender offer for Fujitec at 5,700 yen per share, the Japanese elevator maker said on Wednesday.

Following completion of the tender offer, EQT would own 85%, while Fujitec's founding family would roll over a 15% minority stake, EQT said in a statement.

The deal via EQT's BPEA Private Equity Fund IX, its latest Asia-focused buyout fund, would be the firm's largest buyout in Japan and the largest private equity-led take-private deal this year, the firm said.

Shares in Fujitec plunged 9.5% to 5,616 yen in early Tokyo trade.

Founded nearly 80 years ago and headquartered in Shiga, Japan, Fujitec is the only independent, full-scope elevator and escalator original equipment manufacturer in Japan with presence in 24 markets globally, EQT said.

The investment firm is planning to work with Fujitec's management to improve its operations, accelerate digitisation and expand in Japan, India, North America and Southeast Asia, it said.

EQT's tender offer comes as mergers and acquisitions involving Japanese companies reached a record $232 billion in the first half of this year.

The government's call for better corporate governance, including the privatisation of listed subsidiaries, as well as outbound acquisitions by Japanese firms seeking new growth avenues, will keep igniting mega deals, bankers have said.

A host of global investment firms are beefing up headcount in Japan as deals surge, Reuters has reported.

EQT, which established its Tokyo office in 2006, has received commitments of $11.4 billion for the latest Asia-focused buyout fund, according to a statement earlier this month.

The fund is expected to reach its $14.5 billion hard cap at final close in 2026, it said.

($1 = 148.4400 yen)

(Reporting by Kaori Kaneko and Satoshi Sugiyama in Tokyo and Kane Wu in Hong Kong; Editing by Tom Hogue, Chang-Ran Kim and Michael Perry)