Oaktree Capital launches $670-mn hostile bid for toy maker Jakks Pacific
14 September 2011
Funds of private equity firm, Oaktree Capital Management yesterday launched a hostile $670-million cash takeover bid of US-based toy maker Jakks Pacific, maker of the popular brands of action figures like Cabbage Patch Kids, Pokemon and others.
The Oaktree Funds, one of the largest shareholders of Jakks with around 4.9 per cent, is offering $20 a share, a 25-per cent premium to Jakks's closing share price of $16 on 13 September.
Oaktree had approached Jakks in March and put forth a private offer, but the Malibu, California-based toymaker had repeatedly turned down the proposal, the fund said in the letter.
"We are left with no acceptable alternative but to make it known publicly that we are prepared to acquire, through the Oaktree Funds, all of the company's outstanding common shares," the Oaktree funds said in a statement.
In March, Los Angeles-based Oaktree, which has $80 billion in assets under management, had offered $22.50, but reduced it due to deteriorating economic conditions and lack of improvement in company's prospects.
Oaktree said that it could increase the price of this offer if Jakks "can demonstrate to us further value over the course of our due diligence process."