New Horizon pursues legal action over Japan's Sagami

The petition filed with the Tokyo Stock Exchange is also seeking penalty against Sagami's selling shareholder FamilyMart Uny Holdings. According to a statement, New Horizon said its offer was superior to that made by Aspirant, and that FamilyMart failed to hold an appropriate meeting with the firm regarding its bid.

In August, Aspirant offered JPY1.2 billion ($11.5 million) for FamilyMart's 54% stake in the business. This was in addition to an offer to assume JPY1.8 billion in company debt. The proposed acquisition valued Sagami at JPY65 per share.

New Horizon's bid the following September valued the company at JPY70 per share. This was reportedly increased to JPY90 per share as part of a deal worth JPY4.3 billion. "Our offer is significantly higher," Yasushi Ando, New Horizon's CEO said last month, according to The Financial Times. "It is both incomprehensible and peculiar that we would be ignored."

Sagami stock spiked from around JPY77 in September to as high as JPY165 after the New Horizon offer. As of midday trading on November 7, shares in the company were trading marginally higher at JPY106 apiece.

Established in 1949 as a boutique kimono dealer and listed in Tokyo in 1985, Sagami markets a range of women's clothing, with a focus on kimonos, as well as accessories and jewelry. It is understood to operate more than 400 outlets nationwide. Revenue came to JPY2.1 billion for the 12 months ended February 2016, down marginally on the previous year. Net profit jumped from JPY89.7 million to JPY105 million.

New Horizon is a mid-market buyout firm that has been in operation since 2006. It is currently investing its second fund.

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• Topics
• North Asia
• Consumer
• Buyouts
• GPs
• Japan
• New Horizon Capital