Navigation

FamilyMart Uny to hold 20% stake in Don Quijote

Jiji Press TOKYO (Jiji Press) — Major retail group FamilyMart Uny Holdings Co. said Thursday that it will acquire a stake of up to 20.17 percent in Don Quijote Holdings Co. to make the discount store operator an equity-method affiliate.

FamilyMart Uny will buy the shares in a tender offer to be launched by a subsidiary in November.

The retail group will sell all of its 60 percent equity stake in its supermarket unit Uny Co. to Don Quijote in January next year.

In the tender offer, the FamilyMart Uny group will buy Don Quijote shares at ¥6,600 apiece for a total of some ¥210 billion.

Don Quijote will spend ¥28.2 billion to purchase Uny. It plans to finance the acquisition mainly with cash reserves and bank loans.

FamilyMart Uny aims to focus its management resources on its core convenience store operations by spinning off the sluggish supermarket business.

The group also plans to expand its operations, including overseas businesses, through cooperation with its parent, Itochu Corp., a major trader.

Meanwhile, Don Quijote intends to utilize Uny’s sales networks in the Chukyo region.

Last year, FamilyMart Uny formed a capital and business alliance with Don Quijote, selling to the partner a 40 percent equity stake in Uny, which was wholly owned by the retail group at the time.

Under the alliance, FamilyMart Uny has renovated some of Uny supermarket outlets based on Don Quijote’s sales strategy. The reform has contributed to sale growth at those outlets, sources familiar with the situation said.

Don Quijote will change its corporate name to Pan Pacific International Holdings Corp. on Feb. 1 next year in line with an expansion of its business fields.Speech

Click to play

0:00/-:--

+ -

Generating speech. Please wait...

Become a Premium Member to use this service.

Become a Premium Member to use this service.

Offline error: please try again.