June 11, 2020 / 9:02 AM / a month ago

Bid for Japan's Nichiigakkan undervalues nursing home operator, says investor

TOKYO, June 11 (Reuters) - A tender offer for Japanese nursing home operator Nichiigakkan Co announced on May 8 "substantially" undervalued the company, investment fund LIM Advisors said in a letter to management.

The 1,500 per share offer price recommended by NiichiGakkan's board in a management buyout was below estimated fair value of 2,400 yen per share, LIM wrote in a letter to management dated June 3.

Founder family members, management, and representatives of Bain Capital are affiliated with the offer, creating the potential for conflicts of interest, the letter read. (Reporting by Rocky Swift and Junko Fujita)

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