Skylark MBO Successful
On July 11, Nomura Holdings and private equity firm CVC completed a tender offer for shares of Skylark, a major family restaurant chain with more than 40,000 employees and locations in Taiwan, Thailand, Korea and the U.S. Some 18,800 shareholders tendered 102.6 million shares, or 94% of the outstanding stock, far exceeding the required 67%. The Y278 billion deal represents the largest MBO thus far in Japan. Skylark shares are expected to be delisted at the end of September.

Skylark intends to institute major structural reforms, including the closing of some 150 units. The MBO will increase the company's flexibility and streamline the restructuring effort. Management buyouts were almost nonexistent in Japan during the 1990s, but the number and size of MBOs has been increasing steadily in the new millenium. MBOs represent an important change in the strategy of Japanese firms, which traditionally have prided themselves on their ability to go public. 日経, 東洋経済 (subscription required), Reuters