Steel Partners With Yet Another Tender Offer: This Time for Tenryu Saw

May 23, 2007
By Ken Worsley

The Steel Partners Japan Strategic Fund is currently the largest single shareholder in Tenryu Saw Manufacturing, and it intends to become the only one. This afternoon, Steel Partners tendered an offer worth $227 million to buy all shares in the company that it does not currently own. Steel Partners is offering 4,945 yen per share, a 15% premium on last Friday’s closing price of 4,300 yen. The issue has not traded since that time.

On January 22 of this year, Tenryu traded at 3,110 per share, its lowest price in the past year. It’s high for the year came on April 12, when it traded at 4,900 yen.

Tenryu lists “Leasing real estate” as part of its business activities, but how much real estate or exactly what they own and what it might be worth is a mystery to this observer.

In its letter to the shareholders and employees of Tenryu, Steel Partners had this to say:

You should know that if we are successful with our tender offer, we do not intend to get involved in the day-to-day operations of the Company. We respect the experience and ability of Tenryu’s existing management team and intend to support the team in every way we can. Steel Partners has a long-term successful track record of investing in industrial manufacturing companies, both in Japan and globally. We believe our global network and international experience will be a great resource for Tenryu Saw Mfg. Co., Ltd., helping Tenryu grow and prosper over the coming years.

We believe our offer will present an excellent opportunity for investors, the Company and its employees. Existing shareholders gain liquidity and a chance to sell at a considerable premium to market price. Tenryu will benefit from having a single, supportive investor that is ready to offer expertise, capital and global resources to help the Company grow and prosper.

Steel Partners currently owns at least a 5% stake in 30 Japanese firms.

Filed Under Barbarians at the Gate, M&A, Steel Partners