April 19, 2024

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South Korea’s private equity firm Orchestra Private Equity said Aug. 15 that its portfolio firm Majesty Golf Korea is looking to buy a 49 percent stake in Majesty Golf, a Japanese company that makes high-end golf equipment, for 2.1 billion yen ($19.7 million) from retail shareholders by September.

Majesty Golf Korea will bag the remaining shares of the Tokyo-based firm between Aug. 13 and Sept. 25 via a takeover bid at 195 yen per share. Orchestra PE plans to close the deal by end-September. Mita Securities is a bid manager.

Once Majesty Golf Korea -- which already holds a 51 percent stake in Majesty Golf -- manages to acquire a stake of at least 90 percent in Majesty Golf, it will be entitled to demand the sale of all remaining shares and delist the company from Japan’s tech-heavy bourse Jasdaq. 

The takeover bid is designed to “put Majesty Golf’s Japanese operation under the umbrella of its Korean sales operation and provide quality service to customers in Korea” in a long-term perspective, Orchestra PE Managing Partner Jay Kim said in a statement.

Majesty Golf put itself under the delisting criteria by the Tokyo Stock Exchange on Aug. 9. Majesty Golf shares have been trading roughly 50 percent higher since then.

Majesty Golf Korea, formerly a Korean operation of Jasdaq-listed Majesty Golf, became Majesty Golf's major shareholder as the result of a takeover bid -- at the price of 295 yen per share -- since 2018.

The cash for the latest deal mostly comprises loans that Majesty Golf Korea took out from Yuanta Securities Korea, according to Orchestra PE.

Orchestra PE wholly owns Majesty Golf Korea, since its purchase from Cosmo Chemical and Cosmo Group Chairman Huh Kyung-soo in July 2017. It was the PEF’s first acquisition since its founding in 2014.

Majesty Golf was formerly known as Maruman Golf and got its current name in October last year. The company, established in 1971, has product lineups including its flagship “Majesty.” Majesty Golf set up a Korean entity in a joint venture with Cosmo Group in 2003.

By Son Ji-hyoung (consnow@heraldcorp.com)