Japanese ‘Lost in Translation’ Co-Producer Tohokushinsha Gets $575M Bid

Singapore-based finance firm 3D Investment Partners announced on Thursday its intention to take Tohokushinsha, a Japanese film and TV distribution company, private. The bid values Tohokushinsha at $575 million.

Founded in 1961, Tohokushinsha started as a dubbing house. Over the years, it has diversified its operations to include theatrical, video, and TV distribution, as well as production. The company also runs ten satellite TV channels. Notably, Tohokushinsha co-produced Sofia Coppola’s breakout 2003 film “Lost in Translation” and provided services on the 1980s TV series adaptation of James Clavell’s “Shogun.”

3D Investment Partners currently owns an 18% stake in the publicly listed Tohokushinsha and is offering to buy the remaining equity at JPY600-650 per share. This offer represents a 15% premium over Tohokushinsha’s share price at the close of trading on Wednesday. Consequently, trading of the stock was suspended on Thursday.

For the deal to proceed, Tohokushinsha’s management needs to agree to delisting the shares. The company currently does not meet the minimum requirements for public listing, according to 3D Investment Partners.

In the fiscal year ending March 2024, Tohokushinsha reported sales of JPY52.8 billion, down 5% from the previous year. Ordinary profits fell by 54% to JPY2.21 billion. However, profit attributable to owners rose to JPY4.02 billion. The company attributed the drop in subtitling revenue to the Hollywood actors strike in mid-2023 but noted that net profits were positively impacted by the sale of a previously owned supermarket business.

In May, Tohokushinsha’s management projected net sales of JPY46 billion for the fiscal year ending March 2025. They expect ordinary profit to reach JPY2.71 billion and profit attributable to owners of the parent firm to hit JPY5.1 billion. Basic earnings per share are forecasted at JPY113.

Source: multiple sources