“There would be no future if Ootoya is taken over by Colowide”.
Reuters reports that Japanese-style set-menu eatery chain operator Ootoya Holdings said on Monday its board is opposed to a takeover offer from top shareholder Colowide.
Colowide is one of the largest restaurant operator in Japan and owns the major sushi chain Kappa Sushi.
“There would be no future if Ootoya is taken over by Colowide,” Ootoya President Kenichi Kubota said at a media briefing on Monday.
The board decided to oppose the bid by Colowide to increase its stake to 51.3 per cent from the current 19.2 per cent for USD 66.2 million.
Ootoya’s Kubota said the company is not planning to take any measures to counter the bid. He asked shareholders not to tender their shares to Colowide as the takeover could damage Ootoya’s corporate value and brand.
“Hostile bids had been rare in Japan but as corporate growth slows, some companies started seeking a bigger control in their affiliates to streamline their operations,” wrote Reuters.