At least six law firms were involved in Japanese mobile and internet provider Softbank Corp’s $2.3 billion acquisition of smaller domestic rival, eAccess Ltd: Morrison & Foerster, Akin Gump Strauss Hauer & Feld, Anderson Mori & Tomotsune, Nagashima Ohno & Tsunematsu, Sullivan & Cromwell and Simpson Thacher & Bartlett.
According to Reuters, the deal is expected to be the sixth-largest merger involving a Japanese firm since the start of the business year on April 1, behind U.S.-based Micron Technology Inc's acquisition of bankrupt chipmaker Elpida Memory Inc.
The purchase will enable Softbank, Japan’s No. 3 mobile carrier to step up its battle for market share with its nearest competitor, KDDI. The market share war among Japan’s mobile service providers intensified after KDDI broke Softbank's monopoly on Apple Inc's iPhone last year.
Softbank will pay 52,000 yen ($670) for every eAccess share under a share swap that will be completed in February, Softbank said in a statement on Oct.1, a premium of more than three times eAccess's closing price of 15,070 yen on Sept. 28.
The addition of eAccess's subscribers would give Softbank a total of 39 million users, outstripping KDDI's 36 million customer base, Softbank founder Masayoshi Son said at a press briefing in Tokyo. The generous premium was value for money because of the subscribers, increased network capacity, and cost saving that Softbank would gain, Son said.
Morrison & Foerster is leading the transaction for Softbank, with a Hong Kong-based Akin Gump team helmed by Gregory Puff serving as eAccess’ counsel. The target’s domestic legal advice is being provided by Anderson Mori and Nagashima Ohno.
Goldman Sachs Japan, as financial advisor to eAccess, is being represented by a global Sullivan & Cromwell team including Beijing and Tokyo partner Garth Bray, Tokyo partner Keiji Hatano and New York partner Stephen Kotran.
Simpson Thacher & Bartlett is advising private equity firm Blackstone, which is a shareholder in eAccess.
Candice Mak is North Asia Editor at ALB. Follow us on Twitter: @ALB_Magazine.
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