Key Facts
• Fujitec agreed to a tender offer by European investment fund EQT, deciding to go private.
• The decision stems from disagreements with some existing shareholders over the “Move On 5” plan.
• Activist shareholders, including Hong Kong-based Oasis Management, alleged improper dealings with Fujitec’s founding family.
• In 2023, Oasis pushed for an extraordinary shareholders’ meeting, leading to the dismissal of former chairman Koichi Uchiyama.
• U.S. firm Farallon Capital Management acquired Fujitec shares in 2024.
• Fujitec revised its FY2028 revenue target to ¥283 billion, down ¥42 billion from the original plan.
• China’s real estate downturn has negatively impacted new elevator orders.
• EQT aims to stabilize management and support long-term growth in Fujitec’s elevator business.
• Despite privatization, the founding family plans to remain shareholders, raising concerns about future governance.
• A special committee recommended the founding family not retain shares post-transaction.
Summary
Fujitec has decided to go private by accepting a tender offer from European investment fund EQT, aiming to simplify its shareholder structure and stabilize management. The move follows disputes with activist shareholders over the “Move On 5” mid-term plan and allegations of improper dealings with the founding family. Despite privatization, the founding family will remain shareholders, raising concerns about governance and potential conflicts. Fujitec’s business faces challenges, including a downturn in China’s real estate market, leading to a downward revision of its FY2028 revenue target to ¥283 billion. EQT plans to support Fujitec’s long-term growth in its core elevator business, but balancing the influence of the founding family remains a critical issue.
