Japan's OK Corp offers 64% premium for Kansai Super if merger with H20 scrapped (updated)
03/09/2021 01:46
(Adds details from statement, shares)
TOKYO, Sept 3 (Reuters) - Japan's OK Corp on Friday said it
would launch a tender offer for Kansai Super Market Ltd 9919.T
shares offering 2,250 yen each - a 64% premium over the latest
closing price - if the target scraps a plan to merge with H2O
Retailing Corp 8242.T .
Supermarket operator OK Corp, which owns 7.69% of Kansai
Super Market, said in a statement it would oppose the plan at
Kansai's extraordinary shareholders meeting planned on Oct. 29.
OK Corp said it first approached Kansai Super in June.
The deal with H2O Retailing, which is the chain's top
shareholder with a 10.02% stake, was announced at the end of
August but does not sufficiently explain how minority
shareholder rights will be protected, OK Corp said.
The counterbid sets up an unusual Japanese corporate
face-off as supermarket operators grapple with a shrinking and
aging customer base.
Shares of Kansai Super closed at 1,374 yen on Thursday.
Trading was suspended on Friday morning amid a glut of buy
orders.
A spokesperson for H2O Retailing said it had the stronger
bid but it was for Kansai Super shareholders to decide. Kansai
Super said it was gathering information and declined to comment
further.
(Reporting by Chang-Ran Kim and Sam Nussey; Editing by
Christopher Cushing and Stephen Coates)
((ran.kim@thomsonreuters.com; +81-3-4520-1228))