Japan's Nitori considers bid for Shimachu; target's shares surge (updated)
21/10/2020 01:48
(Adds background on DCM's offer, share moves)
TOKYO, Oct 21 (Reuters) - Japanese furniture retailer Nitori
Holdings Co Ltd 9843.T said on Wednesday it was considering a
bid for home improvement retailer Shimachu Co Ltd 8184.T as
part of a growth strategy driven by mergers and acquisitions
(M&As).
A bid would come after DCM Holdings Co Ltd 3050.T began a
tender offer for its smaller rival Shimachu earlier this month.
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"As part of our (longer-term strategy), we are considering
possibilities for growth through M&As, including Shimachu,"
Nitori said in a statement.
Shimachu said separately that it had not received any
proposal from Nitori. A DCM spokesman said the company would
continue with its tender offer as planned, declining to comment
on Nitori's announcement.
The Nikkei newspaper reported Nitori's interest overnight.
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In early Wednesday trade, shares in Shimachu jumped more
than 13% to 4,760 yen, well above DCM's offer price of 4,200
yen. DCM's shares plunged 8.5% whereas those of Nitori rose
1.5%.
(Reporting by Chang-Ran Kim; Editing by Himani Sarkar and
Christopher Cushing)
((ran.kim@thomsonreuters.com; +81-3-4563-2740;))