Aucnet Inc. will conduct a management buyout(MOB) to turn itself into a privately held company. Kiyotaka Fujisaki, President of the major auctioneer announced the decision.
The decision was made in the company’s board meeting in May to conduct a tender offer. Offer prices are set at 2,100 yen a share for common stock. The current board members will continue to lead the company after the MOB settled.
Cometition is heating up as the used car auction market grows. Aucnet aims to make major changes in its operations, including making active use of the Internet, and believes that such moves will be carried out more efficiently if the used car auctioneer is taken off the stock market.
On the other hand, Japan Automobile Auction Inc.(JAA: Chairman Shigeo Nagashima), which is capitally tie-up with Aucnet, announced that JAA will support the decision of Aucnet. JAA believes that the move will help raise the corporate value.
The two auctioneers have been conducting joint business programs in a wide range of areas, including networking project, bilateral use of auction information, etc.
Aucnet became the first listed company in the stock market in the used vehicle auction industry. The auction market, however, became maturity due to long and sluggish business of retail business.
In order to revive its business, Aucnet will develop the ”Second Start” for the growth of auto auction business.
