Colowide Extends Hostile Tender Offer for Ootoya
Tokyo, Aug. 25 (Jiji Press)--Major Japanese restaurant chain operator Colowide Co. <7616> said Tuesday that it will extend its tender offer for “teishoku” set meal restaurant operator Ootoya Holdings Co. <2705> until Sept. 8 as the hostile bid is struggling to persuade Ootoya shareholders.
Colowide, which runs the Gyukaku barbecue and other restaurant chains, will also lower its goal of raising its stake in Ootoya from at least 45 pct to 40 pct or more, to raise the odds of the bid succeeding.
The share acquisition price is kept unchanged at 3,081 yen apiece. Colowide is calling on Ootoya shareholders on its website to sell their stakes in the tender offer. Ootoya stock ended at 2,700 yen on the Jasdaq market on Tuesday.
“The urgency to achieve a swift business recovery (through cooperation between Colowide and Ootoya) is on the rise,” the company said.
Ootoya is opposed to the tender offer, and the firm’s shareholders, around 60 pct of whom are individual investors, are apparently not convinced by management reform plans Colowide has proposed to Ootoya.
[Copyright The Jiji Press, Ltd.]