Discount store chain Don Quijote Co. said Friday it will sell its entire stake in Origin Toshu Co. to Aeon Co. in response to the major retailer's public tender offer, giving up its bid to take over the boxed-meal chain.
The decision by Don Quijote to sell its 8,445,098 Origin shares, or 47.82 percent of the company's outstanding stock, was made following meetings between Don Quijote Chairman Takao Yasuda and Aeon President Motoya Okada held Tuesday and Thursday, according to the announcement.
The stake includes Origin shares held by a Don Quijote affiliate and Yasuda.
Yasuda told reporters Friday he decided "to start descending the mountain just a step short of the summit" after considering the feelings of rank-and-file employees.
Okada, for his part, said he thought Aeon had totally lost the takeover battle.
"If there was even a minute chance (of buying Origin) by directly speaking (with Yasuda), there was no other option," he added.
In line with the agreement, Aeon will continue its tender offer until March 13 instead of March 1, the originally scheduled closing date. It will keep its purchase price unchanged at 3,100 yen per share.