Baring Private Equity Asia (BPEA) has agreed to acquire all existing Pioneer shares in an effort to take the company private. BPEA is a Hong Kong-based global private equity firm that is one of the largest investors in Asia. The company’s transaction to acquire Pioneer is worth more than $900 million.
BPEA has launched the Pioneer Revitalization Plan, which includes a $679.9 million investment and a cash offer to existing Pioneer shareholders of about $220.8 million.
Pioneer announced the acquisition through a lengthy statement by company CEO and president, Koichi Moriya. The statement read as follows:
“In the first quarter of this fiscal year, Pioneer experienced challenging financial results with cashflow declines. Our earnings report included a note acknowledging uncertainties about our going concern assumptions. As a result, we began exploring a range of measures for companywide management reforms.
“It was during that process that Pioneer chose BPEA as our sponsor to assist with reforms. After deep discussions between both parties, we concluded that it would be best to take Pioneer private. This is because we recognized that to ensure business continuity and return Pioneer to growth in the medium- and long-term, it is vital to swiftly overhaul our organizational structure and review our business portfolio. We also recognized that, given the challenge of achieving near-term profitability, taking the company private represents the best option for Pioneer.
“Consequently, subject to shareholder approval at an extraordinary shareholders’ meeting on Jan. 25 next year and the completion of required filings, BPEA will invest in Pioneer and take Pioneer private, making us a 100-percent owned subsidiary of BPEA.
“Top management was very mindful of its responsibilities when making this decision, and once the investment is in place there will be changes to the management team. My mission is to help revitalize Pioneer as quickly as possible and return the company to a position where it can deliver products and services that delight all of our customers.
“BPEA sees great potential in Pioneer’s innovative technology, well-established brands and people, and shares our vision for the future of our company.
“Despite the challenging situation we face, I firmly believe that this partnership with BPEA and the investment it brings will usher in a bright new future for a revitalized Pioneer.
“I would like to take this opportunity to reiterate my gratitude to all of Pioneer’s stakeholders for their ongoing support and encouragement.
“I particularly want to thank our shareholders for their continued support and understanding amid the difficulties we have experienced in recent years.”