TOKYO, Feb 20 (Reuters) - U.S. private equity firm KKR

has secured a 57.92% stake in Fuji Soft after

the second stage of its tender offer bid, ending a fierce battle

with rival Bain Capital to take the Japanese software developer

private.

Both KKR and Bain had upped their bids multiple times, with

KKR ultimately prevailing with its offer from earlier in

February of 9,850 yen per share.

Bain had said on Monday that it would withdraw its takeover

proposal.

Fuji Soft's announcement on Thursday concludes a protracted

and hard-fought battle between the two private equity

powerhouses that spanned a bidding war, a rare hostile bid from

Bain, and KKR's threat of legal action against Bain.

The saga is emblematic of Japan's hot deal-making market as

global funds increasingly seek out investment targets seen to

have poor corporate governance or underutilised assets that

could be reformed to increase shareholder value.

KKR first launched its bid in August last year but Bain

countered higher in October and had the backing of Fuji Soft's

founder, Hiroshi Nozawa, who criticised the privatisation

process and said Bain's higher bid was in the best interest of

shareholders.

Nevertheless, Fuji Soft's board supported KKR over Bain,

prompting Bain to make a hostile bid in December and ramp up its

criticism of the board, citing "strong concerns and distrust"

over its handling of the privatisation process.

After Bain refused the board's demand it dispose of the

confidential information it had compiled in the due diligence

for its bid, KKR requested Fuji Soft take legal action against

Bain.

Fuji Soft had been subject to an activist investor campaign

from Singapore-based 3D Investment Partners to dispose of its

real estate assets and conduct share buybacks.

3D also began soliciting take-private proposals from private

equity funds in 2023 and called on Fuji Soft to appoint its

candidate as an external auditor to oversee the privatisation

proposal review process.