Japanese restaurant chain Ootoya to oppose Colowide’s takeover bid

Japanese food. Photo by Wesual Click on Unsplash.

Restaurant chain Ootoya Holdings said it would oppose a takeover offer from its top shareholder, Colowide Co, turning the bid into Japan’s latest hostile deal.

In an emailed statement, Ootoya said it would announce on Friday that a group of employees were against the takeover, followed by a formal decision on Monday by the board of directors to oppose the bid.

Ootoya shares rose over 3% to 2,949 yen ($27.50) after the news, while the broader market was slightly down.

Colowide last week offered to buy Ootoya at 3,081 yen a share in a deal that would boost its stake in the company to 51.32% from 19.16%.

Japanese companies are increasingly seeking more control of affiliates to streamline operations.

A spokesman for Colowide, which runs several restaurants from izakayas to sushi chains, said the company does not have any immediate comments on Ootoya’s plan to oppose the bid.

Ootoya has criticised the offer, saying it came as a surprise given Colowide knew the majority of shareholders opposed such a move.

The bid also follows Colowide’s failed attempt to install candidates to Ootoya’s board – a proposal rejected at the annual shareholders’ meeting last month.

Reuters

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.