Mitsubishi Corp. plans to raise its stake in Lawson Inc. in a 144 billion yen ($1.4 billion) tender offer and to turn Japan’s third-largest convenience store operator into a Mitsubishi unit.
The diversified trading company, Japan’s largest by market value, will offer 8,650 yen a share to increase its holding in Lawson to 50 percent from a 33.4 percent stake, the companies said in statements Friday. The offer is 17 percent higher than Lawson’s closing share price Wednesday, before the prospect of a deal was reported.
The acquisition gives Mitsubishi a bigger slice of Lawson’s profit, which is expected to jump about 17 percent to 36.8 billion yen in the year ending February 2017, after two years of decline, according to analyst estimates. More support from Mitsubishi is a plus for Lawson’s expansion as well as supply chain and distribution, said Makoto Sakurai, an analyst at Mitsubishi UFJ Morgan Stanley Securities Co.
Lawson would support the tender offer, it said Friday in the statement. Mitsubishi intends to start buying the shares in January, according to the statement.
Japan’s biggest convenience store operators have been growing by buying up rivals in and outside the country, with Lawson saying in June it was looking to buy other chains in the U.S. as it speeds up overseas expansion.
China-Vegas flights will start Dec. 2
LAS VEGAS >> A Chinese airline says it will start in December the first nonstop flight service between Las Vegas and mainland China.
Hainan Airlines announced last week that it received final approval with the U.S. Department of Transportation to fly between Sin City and Beijing.
The flights going through McCarran International Airport will be on Boeing 787 Dreamliners.
Service is expected to start Dec. 2 and will run Mondays, Wednesdays and Fridays.
Vegas tourism officials are celebrating the news as casino companies continue to court Chinese nationals and Chinese-Americans on and off the Strip.
