Japan's Unizo says Elliott, Ichigo agreed to tender shares (updated)

HIS Co

18/03/2020 07:38

(Adds details from Unizo's statement, bidding background)
    By Junko Fujita
    TOKYO, March 18 (Reuters) - Japanese hotel chain Unizo
Holdings Co Ltd  3258.T  said on Wednesday top shareholders
Elliott Management and Ichigo Asset Management have agreed to
tender their shares to Lone Star after the U.S. fund raised its
bid to 6,000 yen per share.
    The agreement from Elliott and Ichigo, which together
control 22.46% of Unizo, may help bring an end to a bidding war
also involving Blackstone Group Inc  BX.N  and SoftBank Group
Corp's  9984.T  Fortress Investment Group.
    Unizo was a little known company until July when travel
agent H.I.S. Co Ltd  9603.T  made a rare-for-Japan hostile bid
to buy control of the company. Unizo initially backed Fortress's
white-knight bid but quickly withdrew its support. 
    Blackstone joined the bidding war in October, proposing to
buy the company only if Unizo backs its bid. Its latest offer is
6,000 yen per share.  urn:newsml:reuters.com:*:nL4N29X108
    Lone Star emerged as a new white knight in December. The
U.S. fund is trying to buy Unizo under a scheme allowing a group
of Unizo employees to own 73% of Unizo's common shares, while
Lone Star would hold the remainder.  urn:newsml:reuters.com:*:nL4N28W065
    Lone Star raised its bidding price from 5,700 yen to 6,000
yen even as Unizo shares tumbled 10% in the preceding month as
market participants fretted about the impact of the coronavirus
outbreak on the tourism industry.
    Unizo shares closed at 5,250 yen on Wednesday in Tokyo.
    Unizo said it would continue to support Lone Star's bid,
which expires on April 2. Elliott and Ichigo Asset could
withdraw their agreement if a third party offers higher price
than Lone Star's offer, Unizo said.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Blackstone raises Unizo offer to $1.75 bln, topping rival    
 urn:newsml:reuters.com:*:nL4N29X108
Lone Star emerges as white-knight bidder for Japanese hotel
chain Unizo     urn:newsml:reuters.com:*:nL4N28W065
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 (Reporting by Junko Fujita; Editing by Chris Gallagher and
Christopher Cushing)
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