Tam Jai International, renowned for its rice noodle shops across Hong Kong, is poised for a major shift. On Monday night, Toridoll, a Japanese restaurant conglomerate owned by a billionaire, announced its strategic decision to take Tam Jai International private. This move comes as diners increasingly choose to dine in nearby Shenzhen, contributing to a downturn in local retail consumption.
Toridoll plans to acquire the remaining shares and unexercised options of Tam Jai International for up to 556 million Hong Kong dollars, roughly equivalent to $71.5 million. This acquisition will lead to Tam Jai International being delisted from the Hong Kong market, ending its three-and-a-half-year tenure as a publicly listed company.
The decision aligns with the current economic climate in Hong Kong, which faces stagnation and shifting spending patterns. The local dining sector has particularly felt the impact, with Toridoll indirectly owning approximately 74% of Tam Jai shares prior to the announcement. The downturn in local retail consumption has prompted Toridoll to consolidate its holdings and streamline operations by taking its subsidiary private.
The parent company, Toridoll, is known for its strategic investments in the food and beverage sector. As a Japanese entity, Toridoll has successfully expanded its reach internationally. By bringing Tam Jai International back under complete private ownership, Toridoll aims to navigate the challenges posed by the current economic landscape more effectively.
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