H.I.S. withdraws from battle for Unizo - Nikkei Business (updated)

HIS Co

23/08/2019 03:05

(Updates with detail from report, comment from Unizo,
background on deal)
    TOKYO, Aug 23 (Reuters) - Japanese travel agency H.I.S. Co
 9603.T  is withdrawing a bid for control of Unizo Holdings
 3258.T , Nikkei Business reported on Friday, throwing in the
towel after a SoftBank-owned firm made a 'white knight' offer
for the entirety of the hotel operator.
    Nikkei Business, without citing sources, said H.I.S. was
abandoning the bid after deciding not to raise its offer price
of 3,100 yen per share to buy another 40% of Unizo.
    A representative for H.I.S., which owns 4.79% of Unizo and
had planned to run its tender offer through Friday, was not
immediately available for comment.   
    A Unizo spokeswoman declined to comment on the Nikkei
Business report.
    Unizo had rejected last month's approach from H.I.S., which
was valued at $390 mln, saying it was too low and lacked
synergy. 
    It instead backed the friendly approach from SoftBank
 9434.T -owned Fortress Investment Group for the whole company,
valued at $1.3 billion, a week ago. 
    Unizo shares were down 0.7 percent at 4,245 yen in morning
trade on Friday, although that was still above the Fortress
offer price. Shares of H.I.S. were up 4.2 percent at 2,635 yen.
    The tug-of-war over Unizo has marked a stark departure from
most acquisitions in Japan, where takeovers tend to be
pre-agreed deals waiting to be rubber-stamped. Unwelcome bids,
like that of H.I.S., are particularly rare. 
    The deal has also seen the emergence of U.S. hedge fund
Elliott Management Corporation as a player. The fund holds a
9.9% stake in Unizo, according to regulatory filings. 
    Elliot is known for buying stakes in companies in the midst
of acquisitions and forcing better terms for minority
shareholders.

 (Reporting by Chris Gallagher and Junko Fujita; editing by Jane
Wardell and David Dolan)
 ((chris.gallagher@thomsonreuters.com; 81-3-6441-1842;))