CCC To Go Private Via MBO

Culture Convenience Club Co., Ltd., an operator of FC store chains, announced that CCC received a tender offer by MM holdings, an investment firm set up by Mineaki Masuda, CCC's CEO. The TOB price is set at 600 yen, a 35% premium over a 3-month average. The appointed pricing consultant indicated the share price would be between 666-994 yen on a DCF basis; the initially-proposed TOB price at 575 was raised to 600 yen in CCC. The maximum deal size is about 70 billion yen. Mizuho Corporate Bank and Mitsui Sumitomo Bank are ready to provide up to 100 billion yen in financing. CCC has been famous as a FC operator of Tsutaya, the nationwide CD&DVD rental shop. Since the FC operator plans to change the business model drastically, it would not be appropriate for it to remain on the stock exchange, according to the CCC's press release.