Otoya Holdings Opposes Corowide TOB To hostile takeover July 20 18:27
Otoya Holdings Co., Ltd., a set meal chain, has decided to oppose the tender offer of TOB=shares by Corowide, a major restaurant company that develops beef horns. As a result, TOB by Corowide was developed into a hostile takeover.
Although Corowide is the largest shareholder in Otoya, which holds approximately 19% of the shares, it is in conflict with its management policy. For this reason, in order to strengthen its influence on management, we began a tender offer for TOB=shares from the 10th of this month, aiming to increase the shareholding ratio to more than 51% and make it a subsidiary.
On the other hand, Otoya held an extraordinary board meeting on the 20th and decided to oppose Corowide's TOB with the consensus of all 11 directors including outside directors.
Regarding the reason, CoroWide's proposal to review cooking in the store to improve work efficiency may lead to deterioration of the quality of the food provided to customers and may damage the brand value of Otoya.
Kenichi Kubota, President of Otoya Holdings, said at a press conference, "We will promote growth strategies by steadily executing the medium-term management plan with our current management team."
With Otoya's decision to oppose, TOB by Corowide will develop into a hostile takeover.