AVI Japan Opportunity Trust (AJOT) says that it has received a tender offer bid aimed at privatising one of its portfolio companies, Tecnos Japan Incorporated (Tecnos Japan). AJOT says that its manager has signed a tender agreement with Ant Capital Partners, who is making the tender offer, for AVI’s 10% stake in Tecnos Japan.
AJOT’s investment in Tecnos Japan accounts for 3.8% of its net asset value as of 04 February 2025 and the tender offer price of JPY1,155 per share represents a +39% premium to the undisturbed closing price on 04 February 2025. AJOT’s NAV is set to increase by +1.45%, should Tecnos Japan’s share price trade in-line with the tender offer price.
AVI has been a shareholder in Tecnos Japan since April 2024, generating a +17% return for AJOT on the position prior to the tender offer bid announcement (in Japanese yen terms). AJOT’s manager says that, as the largest shareholder owning 10% of Tecnos Japan, it has engaged extensively with the board of Tecnos Japan on ways to enhance corporate value and returns to shareholders.
AVI adds that “Tecnos Japan serves as another example of how AJOT’s concentrated portfolio of asset-backed Japanese small-caps can benefit from AVI’s active engagement strategy against a backdrop of rapidly increasing corporate activity in Japan”.
