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Tokyo Dome stadium

Shares of Tokyo Dome Corp (T: 9681) closed the day 16.72% higher after property developer Mitsui Fudosan paid $1.2 billion to acquire the ballpark operator.

Mitsui Fudosan agreed to pay 120.5 billion yen ($1.2 billion) in a tender offer to acquire Tokyo Dome, which owns the home stadium of the Yomiuri Giants baseball team.

The deal is based on a share price of 1,300 yen, which is a premium of 45% compared to yesterday’s closing price. Mitsui was forced to pay a premium price to acquire Tokyo Dome amid interest from Oasis Management fund, which offered to pay the same price per share in January.

This is a classic “white-knight” deal, where an investor acquires a company with the support from its board in order to prevent a hostile takeover. Mitsui will delist all shares of Tokyo Dome once the takeover is completed.

“Tokyo Dome must have thought Mitsui Fudosan is a better partner while it was under fire by a foreign activist, as Mitsui is a famous Japanese group and is unlikely to hit hard on the company,” Ichiro Kurihara, a director of Tachibana Securities.

Tokyo Dome share price soars after being taken over by Mitsui Fudosan November 2020

Tokyo Dome share price exploded nearly 17% to 1,047 yen to hit a 10-month high.

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