Checking out

20 March 2020 By Alec Macfarlane

Unizo is backing a sweetened $1.9 bln bid from Lone Star that matches Blackstone’s price. Top owner Elliott is ready to accept, eight months into the bidding war. Fresh Covid-19 volatility may accelerate an endgame, but also calls into question the frontrunner’s takeover plan.

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Japanese hotelier and property owner Unizo said on March 18 that Elliott Management and Ichigo Asset Management, its two biggest shareholders, have agreed to tender their shares into a takeover from private equity firm Lone Star after it sweetened its bid to 6,000 yen a share.

Unizo said it would continue to support Lone Star’s bid, which expires on April 2, over a one equal in price from Blackstone. Elliott and Ichigo, which control 13.1% and 9.3% of Unizo, respectively, can withdraw their agreement if another higher price comes along.

Lone Star is trying to buy Unizo under a proposal that would allow a group of Unizo employees to own 73% of the common shares.

Unizo shares closed at 5,870 yen on March 19 in Tokyo.

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