(Add data about Ootoya, update the percentage price)
By Ritsuko Ando
TOKYO, 25 Aug (Reuters) – Japan’s fast food organization Colowide Co has extended its hostile supply to rival Ootoya Holdings after failing to get enough stock until Tuesday’s deadline, despite a premium.
The be offer attracted widespread exposure only because hostile be offers are rare in consensus-driven Japan, but also due to the popularity of Ootoya, a chain of casual restaurants known for its homemade dishes.
Colowide, which manages several popular pub chains and already owns a 19% stake in Ootoya, said it gives shareholders until September 8 to bring their shares.
It presented to buy the shares at 3,081 yen in line with the stock, a 46% premium on their past value.
Colowide also said it would make purchases if it could get at least 40% of Ootoya, reducing the previous target by at least 45%.
The protracted offering shows how Ootoya shareholders, while involved in the effect of the COVID-19 pandemic on the place-to-eat industry, are reluctant to have the company enroll in a giant fast food group.
Unlike many other chains, Ootoya prepares all his food on site. Colowide said it would advertise more power by introducing the chain into its network of “central kitchens” or advertising cooking centers serving several restaurants.
Ootoya said such a system, which is not unusual among national chains of less expensive restaurants, would diminish its appeal to customers.
Ootoya has faced pressure from labour costs and emerging food. The pandemic also affected sales, and consumers avoided going out for dinner.
Colowide stumbled upon Ootoya’s movements after the sudden death in 2015 of Ootoya founder Hisami Mitsumori, who sparked a war in the convention hall and his son, Tomohito, left the company. Tomohito and his mom sold their shares to Colowide.
Ootoya shares closed on Tuesday to 2,700 yen. Colowide has announced its goal of maintaining them. (Report through Ritsuko Ando and Rocky Swift; edited through Jason Neely and Nick Tattersall)
All quotes were delayed for at least 15 minutes. See here for a complete list of transactions and delays.
© 2020 Reuters. All rights are reserved.