TOKYO–(BUSINESS WIRE)–Hibiki Path Advisors (“Hibiki” or “we”) is a Singapore-based investment management firm deploying capital from both domestic and international investors with a long-term perspective. We began building a position in Mandom Corporation (“the Company”) in July 2024 and have since managed it on behalf of our clients. As a minority shareholder, we have engaged actively and consistently supported the Company’s ongoing restructuring and growth initiatives. On September 10, 2025, Kalon Holdings Co., Ltd. announced a tender offer with a share price of JPY 1,960 and the market capitalization of roughly JPY 88.5 bn. This transaction is essentially an MBO led by the founding family with backing from CVC Capital Partners (“CVC”).
As shareholders, we would first like to mention that we have full respect and admiration to the bold decision by the founding family and CVC to pursue this MBO and take the Company private. Partnering with a private equity firm that brings diverse expertise and committing to complete the ongoing restructuring while laying the foundation for sustainable growth, reflects a genuine resolve to drive long-term value creation. In our view, it does carry genuine righteousness. For a century-old company approaching its 100th anniversary in 2027, this balance of tradition and renewal is precisely what can fuel its continued development.
That said, we must state unequivocally that the planned MBO tender offer price of JPY 1,960 grossly undervalues the Company and fails to reflect its intrinsic value. In its FY3/2025 earnings presentation, the Company had disclosed a target share price of JPY 3,000 for FY3/2028. The stark gap between that target—just two and a half years away—and the current offer price of JPY 1,960 is 35% lower than the disclosed target price. This is unacceptable in our view and the lack of any satisfactory explanation is alarming. (For our own assessment of the Company’s fundamental value, please refer to page 9.) To address this eye-glaring fundamental issue, we have submitted a formal letter of inquiry to the Company’s Board of Directors and Special Committee. We are also preparing letters addressed to the founding family and to CVC as well.
While we have the utmost respect for the Company’s determination and commitment to push through its mid- to long-term reforms and growth strategy, any MBO—by its very nature a conflict-of-interest transaction—should be fair and transparent for all shareholders. As such, we are making our inquiry public to raise the awareness of the shareholders.
(Letter to the Board of Directors and Special Committee of Mandom Corporation)
https://www.hibiki-path-advisors.com/engagement/post-5029/
Sincerely yours,
Note: This post does not constitute a solicitation for an offer to acquire or recommend the purchase or sale of specific securities, or advice on investment, legal, tax, accounting, or any other matters. In the event of any discrepancy or conflict between the English and Japanese versions, unless otherwise noted, the meaning of the Japanese language version shall prevail unless otherwise expressly indicated.
Contacts
Yuya Shimizu
Representative Director and Chief Investment Officer
Hibiki Path Advisors
www.hibiki-path-advisors.com
[email protected]
