Restaurant operator to get controlling stake in am/pm Japan
Whole article below
Saturday, July 10, 2004 at 04:57 JST
TOKYO — Barbecue restaurant chain operator Reins International Inc said Friday it will take convenience store operator am/pm Japan Co under its wing by acquiring a 60% stake through a third-party share allotment scheme by the retailer.
Reins, which operates Gyukaku barbecue chains, is apparently trying to diversify its operations as its mainstay barbecue business has been struggling due to Japan's import ban on U.S. beef following the discovery of the first mad cow disease case in the United States at the end of last year. (Kyodo News)
The current owner of am/pm is Japan Energy, formerly known as Nippon Mining and better known under its JOMO petrol station trade name. It might seem odd for an oil company to run convenience stores but they got the idea from the US where ARCO set up their am/pm franchise back in 1979. ARCO is now owned by BP.
Reins International is a company with some big dreams. They started out as a bunch of yakiniku shops in Sangenjaya and have now got about half a dozen or so restaurant brands. They are a big franchise operator too so I guess that's where they see the opportunity. They also own that Fishbank restaurant on Nishi Azabu crossing in Tokyo just down from their Roppongi Hills office.
Funny thing is, although their Gyukaku stores saw existing store sales down 15% over the first 6 months of the year, the customers numbers were down more than that so the ones they did get were spending more money.
Do you reckon someone in the stock market knew this news before yesterday's announcement? They are going to need some finance, mind you so some judicious price manipulation might be in order.
Reins International JASDAQ stock price
