Singapore-based finance firm 3D Investment Partners said Thursday that it is seeking to take private Tohokushinsha, the Japanese film and TV distribution firm. Its bid values Tohokushinsha at $575 million.
Founded in 1961, Tohokushinsha started as a dubbing house and has since expanded its business to include, among others, theatrical, video and TV distribution and production as well as operation of 10 satellite TV channels. It was a co-producer of Sofia Coppola’s breakout 2003 movie “Lost in Translation” and provided services on the 1980s series adaptation of James Clavell’s “Shogun.”
3D Investment already owns an 18% share stake in the stock market listed Tohokushinsha and is now offering to buy the balance of the equity at a price of JPY600-650 per share.
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At the higher figure, the offer would represent a premium of 15% to Tohokushinsha shares at the close of stock trading on Wednesday. Trading in the stock was suspended on Thursday.
3D Investment said that Tohokushinsha’s management would have to agree to the delisting of the shares – the company currently fails to maintain the minimum free-float requirements for a listing – and other conditions, in order for the deal to go through.
For the year to March 2024, Tohokushinsha reported sales of JPY52.8 billion (down 5% on 2023) and ordinary profits of JPY2.21 billion (down 54%). But profit attributable to owners increased to JPY4.02 billion.
It explained that subtitling revenue decreased as a result of the impact of the Hollywood actors strike in mid-2023. However, its net profits were boosted by the sale of a supermarket business that it previously owned.
In May, management provided guidance for the current financial year (to March 2025), pointing to net sales of JPY 46 billion, ordinary profit of JPY 2.71 billion and profit attributable to owners of the parent firm to be JPY 5.1 billion. Basic earnings per share were forecast at JPY 113.
