TRU takes control in Japan - ToyNews

TRU takes control in Japan

TRU takes control of Japanese operation with increased share purchase.
Author:
Publish date:
5_Pocoyo.jpg

Toys R US Inc has taken control of its Japanese unit, Toys R US-Japan, by buying about $32 million worth of shares from McDonald's Holdings Co (Japan).

The deal arose out of Toys R US-Japan agreeing to pay two billion yen ($19.3 million) to settle a lawsuit with McDonald's Holdings over a contract under which it had paid the hamburger chain a percentage of its sales for business advice.

After ending that contract, McDonald's Holdings, which is Japan's largest fast-food chain and about half owned by McDonald's Corp, wanted to unload its 13 percent stake in Toys R US-Japan.

A wholly-owned investment vehicle of Toys R US Inc said it would launch a tender offer to buy that stake, spending about 3.3 billion yen to boost its holding in the Japan unit to about 61 per cent from 47.76 per cent.

It will offer 729 yen per share, or 3 percent below Tuesday's close of 754 yen, and did not set an upper limit on how many shares it will buy.

That leaves an outside chance the tender could lead to a delisting of the unit, although that is unlikely to happen since the offer is at a discount to the market price, a spokesman for Toys R US-Japan said.

Toys "R" Us Inc is owned by a consortium that includes Kohlberg Kravis Roberts & Co, Bain Capital and Vornado Realty Trust.

Toys R US-Japan runs 168 stores in Japan.

Related

Featured Jobs

Copyrights Group

Marketing Manager

The Copyrights Group is one of the licensing arms within The Vivendi Group. Acquired by Vivendi in 2016 Copyrights manages the licensing for a portfolio of properties to include Paddington Bear. Some of the other companies within the Vivendi Group include Universal Music Group, and their licensing arm Bravado, Gameloft and Studiocanal to name a few.