Japan’s second-largest convenience store operator FamilyMart Co. will become a wholly owned subsidiary of top shareholder Itochu Corp. after the trading house succeeded in its tender offer for the retailer’s shares.
The deal will lift Itochu’s stake in FamilyMart to 65.7 percent from 50 percent, allowing the trading company to begin the process of delisting the convenience store operator from the first section of the Tokyo Stock Exchange and take it private, the company said in a statement Tuesday.
The transaction, announced in early July, had faced criticism from activist investors. Itochu had offered ¥2,300 for the FamilyMart shares it did not already own, but some investors said the convenience store operator’s full value wasn’t reflected in the offer price, which represented a premium of 31 percent at the time. Funds such as RMB Capital and Oasis Management demanded that Itochu either raise its offer or that FamilyMart pay out a special dividend to shareholders.