Regus operator IWG to sell Japan operations for 320 mln pounds (updated)
15/04/2019 07:56
(Adds details, background, analyst quote)
April 15 (Reuters) - British office space provider IWG Plc
IWG.L said on Monday it would sell its Japanese operations to
TKP Corp 3479.T for 320 million pounds ($418.8 million) as
part of a strategic partnership.
The company behind the Regus and Spaces brand has been
looking to close or refurbish locations in the UK and some other
markets to revive its business, which has been hit by a weak
property market in London and higher costs.
TKP will buy 130 flexible co-work centres operated by IWG in
Japan and will also allow the Japanese company to exclusively
use IWG's Regus, Spaces and OpenOffice brands. urn:newsml:reuters.com:*:nRSO1253Wa
IWG Chief Executive Officer Mark Dixon will join TKP board
as a non-executive member. The deal needs antitrust clearance in
Japan and is expected to close in May, IWG said.
Last month, IWG had said it would revamp some locations
including in the UK after reporting a dip in its full-year
operating profit. urn:newsml:reuters.com:*:nL3N20T1TY
Credit Suisse upgraded IWG to "outperform" from
"underperform" and raised its price target to 328 pence from 200
pence, saying the deal "begins the evolution towards a franchise
model with consequent benefits."
($1 = 0.7641 pounds)
(Reporting by Shashwat Awasthi in Bengaluru; Editing by Bernard
Orr and Gopakumar Warrier)
((Shashwat.Awasthi@thomsonreuters.com; within U.S.+1 646 223
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