Unizo keeps door open for Blackstone, Fortress talks (updated)

HIS Co

21/10/2019 12:33

* Unizo to continue talks with Blackstone, Fortress
    * Blackstone to launch tender offer at 5,000 yen
    * Fortress ready to discuss improving its bid - Unizo 

 (Adds details about Fortress bid)
    By Junko Fujita
    TOKYO, Oct 21 (Reuters) - Unizo Holdings  3258.T  said
Monday it would continue talks with Blackstone Group  BX.N  and
SoftBank-backed  9984.T  Fortress Investment Group on a
potential takeover, raising the possibility of a bid battle
between the two global buyout firms.
    Potential rival bids from Blackstone and Fortress would mark
another twist in the takeover saga surrounding the once-obscure
hotelier, now seen as a test case for Prime Minister Shinzo
Abe's push for greater transparency and corporate disclosure.
    Blackstone last week told Unizo it would launch a tender
offer at 5,000 yen ($46.05) a share and said it would consider
other options, including initiating a bid, if Unizo did not
agree to the conditions by Wednesday.  urn:newsml:reuters.com:*:nL3N27024N
    "We have carefully evaluated and considered Blackstone's
offer. And today all the board members agreed to continue talks
with Blackstone as its proposals could help maintain and improve
corporate value and secure shareholders benefit," Unizo said in
a statement. 
    Unizo said separately on Monday it would also continue talks
with Fortress, which in August emerged as Unizo's white-knight
bidder. But in September, Unizo had withdrawn its backing for
Fortress.
    Unizo said it had asked Fortress to raise its offer price to
5,000 yen a share, the same as Blackstone's offer, from 4,000
yen. Unizo said Fortress had said it was ready to discuss
improving the bid. 
    Unizo had said previously that Fortress did not respond to a
request to raise its offer price to 5,000 yen from 4,000 yen.
Unizo shares closed at 4,960 yen on Monday. 
    Last week, Fortress had said it would extend its tender
offer period for Unizo for a third time to Nov. 1.
    A Tokyo-based Fortress representative declined to comment on
Monday. A Hong Kong-based Blackstone spokeswoman was not
immediately available for comment.
    Unizo has already rejected other buyout proposals from
Blackstone as well as one from a "locally renowned" fund that it
did not identify.
    In July, Unizo became the target of a hostile bid from a
travel agent H.I.S. Co  9603.T .  urn:newsml:reuters.com:*:nL3N26V2ZQ
    Last week, Unizo's biggest shareholder Elliott Management
had pushed Unizo to accept Blackstone's offer, saying the offer
of 5,000 yen was beneficial for shareholders.  urn:newsml:reuters.com:*:nL3N2721RZ  
    But Unizo is continuing to demand certain conditions that
both Blackstone and Fortress have not agreed to.
    Unizo said it had asked both Blackstone and Fortress to
allow it to create an entity that would have veto rights over
the timing and method of a future exit of Blackstone. 
    Unizo also said it had also asked the both funds not to
break up the company. 
    
 

($1 = 108.5700 yen)

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
EXPLAINER-What makes Japanese hotelier Unizo attractive for
Blackstone and Elliott?     urn:newsml:reuters.com:*:nL3N2722FH
BREAKINGVIEWS-Blackstone makes like a sea urchin in Japan   
 urn:newsml:reuters.com:*:nL3N2710JM
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 (Reporting by Junko Fujita; Editing by Gerry Doyle and Jane
Merriman)
 ((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters
Messaging:junko.fujita.reuters.com@reuters.net;))