KDDI intends to acquire shares of Lawson at 10,360 yen each, offering a 16% premium to Lawson’s previous closing price of 8,913 yen on Tuesday. According to Kyodo News, KDDI plans to utilize Lawson’s extensive network of approximately 14,600 stores across Japan to promote its banking and insurance products. Additionally, KDDI aims to provide remote smartphone support services at Lawson stores. As a result, shares of Lawson, Japan’s third-largest convenience store chain, surged by 18% following the privatization offer.
The proposal entails a collaboration between conglomerate Mitsubishi and mobile carrier KDDI, with each entity acquiring a 50% ownership stake in the convenience store chain. KDDI intends to procure shares at a price of 10,360 yen ($70.07) per share from existing shareholders in April, with the transaction anticipated to conclude by September. This offering represents a 16% premium over Lawson’s closing share price of 8,913 yen on Tuesday, valuing the deal at approximately 500 billion yen ($3.4 billion). Presently, KDDI holds a 2.11% stake in Lawson, while Mitsubishi possesses a 50.11% stake.
Following the completion of the agreement, Mitsubishi announced in a press release that Lawson’s stock will be removed from the Tokyo Stock Exchange. Additionally, Kyodo News reported that KDDI plans to utilize Lawson’s extensive network of approximately 14,600 stores across Japan to endorse its banking and insurance offerings, alongside delivering remote smartphone support services at these outlets. Furthermore, KDDI will integrate Lawson’s products and services into 2,200 of its mobile phone stores nationwide as part of the collaboration.
Kyodo also reported that Lawson will integrate KDDI’s technologies to enhance the efficiency of its distribution network and fortify its store capabilities, particularly in times of disasters.
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