Tokyo-based convenience store operator FamilyMart UNY Holdings Co. Ltd. said Oct. 11 that it will sell its remaining 60% stake in its subsidiary Uny Co. Ltd. to Japanese general merchandise retailer Don Quijote Holdings Co. Ltd.
Don Quijote already holds 40% of Uny following a business alliance agreement with FamilyMart in 2017. The arrangement has seen both companies opening a joint store in Japan, in addition to their collaboration in other retail initiatives.
In the latest announcement, FamilyMart also said it will deepen ties with Don Quijote amid a challenging retail environment in Japan. The company said it will acquire 20.17%, or 32,108,700 shares, of Don Quijote for ¥6,600 per share for a total consideration of ¥211.92 billion.
FamilyMart plans to acquire the shares through an undisclosed subsidiary in early November, subject to approval by Don Quijote's shareholders. FamilyMart said it has the backing of Don Quijote's board if a tender offer pushes ahead.
FamilyMart added that it intends to make Don Quijote an equity method affiliate upon completion of the transaction, but said Don Quijote will remain a listed company, retaining its management independence.
FamilyMart became a consolidated subsidiary of Japanese textile company Itochu Corp. in August following the completion of a tender offer.
As of Oct. 10, US$1 was equivalent to ¥112.67.