Oaktree Capital Management has submitted a proposal to take JAKKS Pacific (NASDAQ: JAKK) private for $20 per share, a total equity value of about $670 million. The firm, which owns 4.9% of JAKKS' common shares, claims it made the proposal public after the company's Board continually refused to engage in meaningful discussions. Oaktree has stated that it is willing to increase the proposed price, depending on findings during its due diligence process. The firm is prepared to take its offer directly to the company's shareholders if necessary. JAKKS designs and markets toys, and its CEO has publicly acknowledged receipt of the proposal.
Since the beginning of 2007, PE investors have taken 60 B2C companies private, according to the PitchBook Platform. PE investors are once again turning to the public markets as hunting grounds for B2C investments and finding favorable opportunities, as revealed by the increasing number of public-to-private transactions in recent years. Deals involving $1 billion or more, which accounted for a significant portion of the activity in 2007 and 2008, have also returned after an absence in 2009.