Colowide Aiming to Buy Ootoya in Possible Hostile Bid
Tokyo, July 9 (Jiji Press)--Major Japanese restaurant operator Colowide Co. <7616> said Thursday it will launch a tender offer for domestic industry peer Ootoya Holdings Co. <2705>, which is expected to become a hostile bid.
Colowide, which owns about 19 pct of Ootoya, is seeking to increase its stake to some 51 pct to make it a subsidiary. Colowide, which runs "Gyukaku" barbecue restaurants and other chains, aims to achieve business recovery partly through joint procurement with Ootoya at a time when the restaurant industry has been hit hard by the fallout of the novel coronavirus epidemic.
In the tender offer from Friday to Aug. 25, Colowide will buy Ootoya shares at 3,081 yen apiece, some 18 pct higher than the stock's closing price of 2,613 yen on the Jasdaq market on Thursday.
The share acquisition costs are likely to total 7.2 billion yen. Colowide plans to keep Ootoya listed after the tender offer.
Ootoya, which mainly offers "teishoku" set meals, said in a statement that the tender offer was announced "unilaterally and suddenly." Colowide's action is "very regrettable" as it disregards the will of Ootoya shareholders shown recently, the statement said.
[Copyright The Jiji Press, Ltd.]