Hokkaido-based Hotel Operator To Go Private Via MBO

Karakami Kankoh Co., a listed Hokkaido-based hotel chain operator, announced that Karakami Kanko approved a tender offer by an investment vechile set up by its current CEO and the founding family. The TOB price is set at 120 yen, a 36.4% premium over a 3-month average. The Hokkaido Bank is ready to provide as much as 880 million yen in financing. Karakami Kanko has been in troubles financially from sluggish sales for years.