July 9, 2020 / 10:31 AM / a month ago

Restaurant chain Ootoya joins Japan's growing list of hostile takeover targets

TOKYO (Reuters) - Japanese casual dining chain Ootoya Holdings (2705.T) rebuffed a takeover move by restaurant group Colowide Co (7616.T) announced on Thursday, becoming the latest in a growing list of hostile takeover targets in the country.

Colowide, which already owns a 19% stake in Ootoya, said in a statement on Thursday that it would launch a tender, seeking to increase its stake to as much as 51%, offering to buy the shares at 3,081 yen, a premium of more than 45% on Wednesday’s closing price.

Ootoya said the announcement by Colowide, which runs popular restaurants such as barbecue chain Gyu-Kaku, had come as a surprise and that a majority of shareholders were against the move.

Hostile takeovers are rare in corporate Japan, which values consensus, but increasing pressure on companies to deliver shareholder returns amid a sluggish domestic market have prompted more such moves.

Reporting by Ritsuko Ando; Editing by Susan Fenton

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