House Foods Group, the owner of Japan's largest curry chain CoCo Ichibanya, is considering selling the business, including the option of taking the company private, causing shares of Ichibanya Co. to surge 16% in trading on the Tokyo Stock Exchange. House Foods holds a 51% stake in Ichibanya, which had a market value of approximately 174.2 billion yen, or about $1.1 billion, as of Monday. Both companies confirmed a Nikkei report and stated they are considering various options, including going private. Analyst Tsutomu Yamada of Mitsubishi UFJ eSmart Securities said that a change in major shareholders could be a good opportunity for growth and expects the stock price could rise another 30% if the sale materializes. CoCo Ichibanya has nearly 1,500 stores both in Japan and overseas, including the U.S., the U.K., and India.
Ichibanya Co., Ltd.Shares surged 16% as parent House Foods considers selling the chain, with an analyst expecting further upside if a sale materializes.
House Foods Group Inc.House Foods is considering selling its 51% stake in CoCo Ichibanya, including taking it private, a potential M&A/divestiture event.
