Tohokushinsha Film Corporation announced it has received a tender offer from Singapore-based 3D Investment Partners, aiming to take the Japanese media company private. The investment firm plans to establish a special purpose company to facilitate the acquisition, intending to increase Tohokushinsha’s value away from the public market’s scrutiny.
Tohokushinsha’s board is forming a special committee of independent directors to evaluate the proposal, which they consider a sincere acquisition offer. The committee will ensure the interests of minority shareholders are protected in this significant decision.
Founded in 1961, Tohokushinsha initially gained prominence in film dubbing and distribution before expanding into commercial production. It now stands as a major player in the Japanese media industry, rivaling AOI TYO Holdings. Despite its stable financial performance, Tohokushinsha’s growth has been slow, with a market capitalization of 79.2 billion yen as of July 2024 and projected sales of 52.8 billion yen for the fiscal year ending March 2024.
3D Investment, known for its strategic investments in Japanese firms like Toshiba and Wacoal, began acquiring Tohokushinsha shares in early 2023, reaching nearly an 18% stake by March 2024. The firm has outlined strategies to enhance Tohokushinsha’s value, including withdrawing from broadcasting and focusing on IP and content investments.
As Tohokushinsha deliberates on the offer, the market watches closely, recognizing the potential shift in company direction under new ownership. If Tohokushinsha rejects the proposal, 3D Investment might escalate to a hostile takeover, depending on the founding family’s stance, which currently holds a controlling share.
