TOKYO, June 18 (Reuters) - An alliance led by Bain Capial has secured more than 70 billion yen ($648.3 million) to finance a bid for Japanese audio equipment maker D&M Holdings Inc 6735.T, sources familiar with the matter said.
Shares of D&M Holdings soared 11.7 percent to 467 yen.
U.S. buyout fund Ripplewood’s holding company RHJ International SA RHJI.BR is auctioning off its roughly 49 percent stake in D&M, the maker of Maranz and Denon audio equipment. The winner of the auction is expected to launch an offer for the whole company.
The alliance, which also includes Japanese audio maker Kenwood Corp 6765.T, is competing against Advantage Partners in the bidding process. The winning bid is expected to be announced soon.
U.S. electronics retailer Best Buy Co. and Merrill Lynch Global Private Equity, the private equity investment arm of Merrill Lynch MER.N, which had also been eyeing D&M, withdrew after the first round of bidding in March, said the financial sources.
The Bain-led group has already secured over 70 billion yen in debt-financing arranged by banks including Aozora Bank Ltd (8304.T), Mizuho Corporate Bank and Shinsei Bank Ltd (8303.T), said the sources, who declined to be named.
Other banks such as BNP Paribas, JP Morgan, Lehman Brothers, Sumitomo Mitsui Bank and UBS, which previously backed the Kenwood-led consortium, have withdrawn from the auction.
Philips, the second-biggest shareholder, is expected to sell its 12 percent stake once the highest bidder launches a full buyout offer. (Reporting by Wakako Sato and writing by Mariko Katsumura; Editing by Sophie Hardach)