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Zensho’s Nippon Restaurants to fully consolidate Coco’s
Posted on Thursday, 07 November 2019 14:49
Shares in Coco’s Japan closed up 15.8 per cent on news Zensho Holdings’ Nippon Restaurant is acquiring the 45.5 per cent stake not already held via an all-scrip deal worth JPY 111.19 billion (USD 1.02 billion).
The exchange ratio will be made on a third-party allotment basis and equates to a price of JPY 1,538.32 per share, or a premium of 10.8 per cent to the last unaffected market close of JPY 1,388.00 on 6th November.
Zensho’s public takeover, which Zephyr, the M&A database published by Bureau van Dijk, shows is among the top ten of a global restaurant operator on record, is the second step of a group-wide reorganisation that began a year ago.
In November 2018, the parent announced it would transfer its 51.3 per cent stake - valued at JPY 19.87 billion in the markets at the time - in Coco’s to Nippon Restaurant.
Zensho is consolidating its family dining category to improve business efficiency, increase store count, further promote the joint use of the group’s manufacturing facilities and logistics and do away with potential conflicts of interest.
This segment comprises Jolly-Pasta, Big Boy Japan and Coco’s, the last of which has made efforts to improve its performance by introducing campaign menus and improving the standard of service across the chain.
Zensho’s family dining category had 1,371 restaurants, at 30th June 2019, and aggregate sales of JPY 30.24 billion in the three months ended 31st March 2019.
The corporation delisted and fully consolidated Jolly-Pasta earlier this year by acquiring the remaining 35.5 per cent not already held for JPY 10.84 billion.
Zephyr shows the largest acquisition targeting a Japanese restaurant or other eating place operator on record was Bain Capital’s institutional buyout of Skylark for USD 3.35 billion in 2011.
© Zephus Ltd