Japan's Ootoya allies with food delivery firm amid hostile bid
14/08/2020 05:04
TOKYO, Aug 14 (Reuters) - Restaurant chain Ootoya Holdings
2705.T , a target of a hostile bid by its largest shareholder,
Colowide Co 7616.T , said on Friday it had allied with online
grocery delivery company Oisix Ra Daichi Inc 3182.T .
Ootoya and Oisix Ra Daichi, a leading online food seller,
will develop meals and sell them on each others' networks,
Ootoya said in a statement.
Ootoya is trying to thwart the bid from Colowide, which is
aiming to increase its stake in Ootoya to 51.32% from 19.16%, as
it tries to diversify revenue sources. urn:newsml:reuters.com:*:nL3N2ER24M
But Ootoya shares have been trading below Colowide's offer
of 3,081 yen a share. Colowide's bid runs until Aug. 25.
Hostile bids have been rare in Japan. But as corporate
growth slows, some companies are seeking greater control over
their affiliates by offering a big premium to the affiliates'
market value.
Some financial said a target company's blocking such an
offer was against shareholders' benefit.
Ootoya's shares have risen almost 37% to 2,885 yen on Friday
morning since July 8, the day before the offer was made.
Ootoya operates restaurants specialising in home made
Japanese meals. Colowide runs various types of restaurants,
including izakayas, sushi chains and karaoke shops.
Online food delivery, including easy-to-make "meal kits", has
gained popularity this year as the coronavirus outbreak
discouraged people from shopping in crowded supermarkets.
Oisix is one of Japan's biggest online food sellers,
specialising in organic vegetables. Its main competitors are
consumer cooperatives and the growing e-commerce sites of big
supermarkets such as Aeon 8267.T and Seven & i Holdings
3382.T .
(Reporting by Junko Fujita and Ritsuko Ando. Editing by Gerry
Doyle)
((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters
Messaging:junko.fujita.reuters.com@reuters.net;))