Private equity firms Bain Capital, Warburg Pincus, and Blackstone are considering bids for Japanese logistics company Nikkon Holdings, which is exploring a potential take-private deal.

The first round of bidding is expected to take place next month. According to sources familiar with the matter who spoke to Bloomberg, the Tokyo-based company has appointed financial advisers to manage the process and established a special committee to oversee the transaction. A second round of bidding is scheduled for August.

Nikkon Holdings was founded in 1950 and operates through four core segments: transportation, packaging and testing and warehousing. The company is listed on the Prime Market of the Tokyo Stock Exchange and has a market capitalization of approximately $2.2 billion.

Major shareholders in the company include Farallon Capital Management, which owns 23%, and Oasis Management Co., which owns 17%, according to Marketscreener data.

Following the announcement, the company’s total market capitalization was approximately $4.6 billion, though it could increase to nearly $6.2 billion, Bloomberg added.

Shares of the company are up 9.75% as of 3:30 GMT, according to data from Perplexity.ai. 

A recent Bain & Company Asia-Pacific Private Equity report noted that Japan stands out as a clear performer, stating it was the only major market to generate both deal value and count.

This strength is being driven by "corporate governance reforms, ample carve-out and privatization opportunities, and supportive financing conditions helped enable dealmaking," the report stated. 

"Ongoing governance reforms and balance sheet optimization by Japanese corporates have continued to unlock carve-outs and opportunities to take companies private. Strong historical returns, capital investment from local and global GPs, along with favorable financing conditions, have enabled large-scale transactions, helping increase Japan's market share," the report continued.

Image via Shutterstock/ Alec Issigonis