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Nitori HD will develop a home center mainly in the metropolitan area on the 29thThe company announced that it will hold a takeover bid (TOB) for 5,500 yen per share to Shimatada, with the aim of making it a wholly owned subsidiary.It will be offset by approximately 30% higher than the 4,200 yen purchase price for the shares announced by DCM Holdings on the 2nd.
Nitori Store in Tokyo (April 25)
It did: post a 30th year in a row of rising earnings along with ever-expanding sales. Photographer: Shiho Fukada / Bloomberg
Nitori HD is targeting the TOB start to mid-November outlook, the TOB a total of about 214.3 billion yen maximum. The purchase price is the closing price of Shimachu’s shares of 5060 yen on the 29th plus a premium of 8.7%. We plan to use loans from Mizuho Bank and our own funds for the TOB. The lower purchase limit was set at 19,477,600 shares (50% ownership ratio).
Nitori will enter the home center business through the acquisition of Shimatada, with the aim of developing a wide range of products. Considering that the company that sells furniture and interiors has a high affinity with Shimatada, who entered the home center business from the furniture sales business, said that he had been considering capital and business alliances and commercial integration with companies as an option. target people since 2017. ..
Nitori HD explained that it would be possible to get approval from Shimatada and stated that it would initiate the TOB even if approval was not obtained.
Shimatada announced on the 29th that it received a “declaration of intent regarding business integration” from Nitori HD. He said he would review the content, discuss it with DCMHD and Nitori HD after discussions, and then re-announce his opinion.
A DCMHD spokesperson said the TOB would go ahead as planned at this time, but declined to comment on the TOB to Shimatada from Nitori HD and the possibility of raising prices in the future.
Regarding Shimatada, DCMHD, a major domestic hub, plans to take a takeover bid before November 16.It is being implemented and Shimatada also agrees with DCM’s proposal. In addition, the City Index Elevens, a former affiliate of the Murakami Fund, announced on the 21st that it owned 8.38% of Shimatada’s shares for the purpose of advising management and making important proposals.
Shimatada’s management system unchanged
At the meeting on the 29th, President Akio Mitori declared that he had proposed “the integration of management for coexistence and co-prosperity between the two companies.” There is. “
Also, when Nitori HD expanded from Hokkaido, where its head office is located, to Kanto in the 1990s, it introduced the episodes it learned by visiting Shimatada stores many times, felt an affinity for Shimatada, and evaluated it highly. I appealed that.
In addition to having an interview with Shimatada’s management at the end of September, he allegedly delivered the content of the Nitori HD proposal to Shimatada’s directors in writing. There are no plans to change Shimatada’s management system or the employment of employees. Daiwa Securities is the financial advisor for the Nitori HD side of the TOB.
Nitori HD has set a long-term goal of 3,000 stores and consolidated sales of 3 trillion yen by 2032. Sales in the previous fiscal year (February 2008) were 642.3 billion yen, both in Japan and abroad.The number of stores (as of August 20) is 621.
(We will update the article in response to Shimatada’s announcement.)
