Japan's Colowide extends hostile bid for rival Ootoya (updated)
25/08/2020 12:01
(Adds detail on hostile offer)
TOKYO, Aug 25 (Reuters) - Japanese fast-food restaurant
group Colowide Co 7616.T extended its hostile bid for rival
Ootoya Holdings 2705.T after failing to secure enough shares
by Tuesday's deadline, despite offering a hefty premium.
The bid has attracted widespread publicity not only because
hostile offers are uncommon in consensus-driven Japan, but also
due to the popularity of Ootoya, a casual dining chain known for
its home-style dishes.
Colowide, which runs several popular pub chains and already
holds a 19% stake in Ootoya, said it was giving shareholders
until Sept. 8 to tender their shares.
It has offered to buy the shares at 3,081 yen per share, a
46% premium to their earlier value.
Colowide also said it would carry out the purchases if it
can secure at least 40% ownership of Ootoya, lowering a previous
target of at least 45%.
The extended bid shows how Ootoya shareholders, while
worried about the COVID-19 pandemic's impact on the restaurant
business, are reluctant to see the company join a large,
fast-food group.
Unlike many other chains, Ootoya prepares all of its food on
site. Colowide has said it wants to promote more efficiency by
introducing the chain to its network of "central kitchens" or
commercial cooking hubs serving multiple restaurants.
Ootoya has said such a system, common among cheaper,
nationwide dining chains, would be a betrayal of its values,
lessening its appeal to customers.
(Reporting by Ritsuko Ando and Rocky Swift; editing by Jason
Neely and Mark Potter)
((Ritsuko.Ando@reuters.com; +81 3 6441 1743;))