Japan-based fast food restaurant group Colowide has increased its stake in troubled dining chain Ootoya Holdings to 46.77% after a hostile takeover bid.
Last month, the group, which runs a range of Japanese-style pubs and restaurants, including the Gyu-Kaku grilled beef eatery, extended its bid for Ootoya after it failed to secure sufficient shares by the deadline.
By that time, Colowide already held a 19% stake in Ootoya and gave time to shareholders until 8 September to tender their shares. The company said that it would make the purchases if at least 40% of Ootoya was secured.
Initially, it had planned to accumulate its stake in Ootoya to at least 45% in the offer.
Colowide now plans to send new directors to Ootoya with immediate effect after an extraordinary shareholders’ meeting.
The company said that the tender ended successfully after a sufficient number of offers were received from shareholders of Ootoya to increase its stake in the set-menu eatery above the targeted lower limit of 40%.
The existing management of Ootoya is planned to be reshuffled and new cost-cutting efforts would be introduced to improve the company’s performance with the sharing of its central kitchens and other logistic facilities.
Furthermore, Colowide plans to improve Ootoya’s profitability by conducting joint procurement and distribution.
Colowide operates a total of 227 overseas outlets in 12 countries and regions, including the US and Taiwan, while Ootoya runs 116 restaurants in a number of countries, including Thailand, Vietnam and Indonesia.