Topcon shares surge nearly 10%on report of takeover interest from KKR, EQT

Investing.com– Topcon Corp (TYO:7732) rose sharply in Tokyo trade on Tuesday after Bloomberg reported the optical equipment maker is weighing takeover offers from private equity giants including KKR & Co LP (NYSE:KKR) and EQT (ST:EQTAB).

Topcon shares surged nearly 10% to 1,9280 yen- their highest level since July 2023. 

Topcon held its first round of bids in September, narrowing its options to offers from KKR and EQT, the Bloomberg report said. Government-backed Japan Investment Corp also plans to bid for the firm in its second round of bids, which may happen by end-December. 

Bloomberg said the offers also came as Topcon grapples with some activist investor pressure to unlock value. 

The Topcon offers come amid heightened M&A activity among Japanese firms. 7-11 owner Seven & i Holdings Co., Ltd. (TYO:3382) received an unsolicited takeover bid from Canada’s Alimentation Couche Tard Inc (TSX:ATD) earlier this year, while recent reports said Seven & i’s founding Ito family could take the firm private.

KKR is also reportedly considering an investment in Seven & i’s supermarkets unit.