TOKYO, Aug. 6 /PRNewswire/ -- Hotel Okura Co., Ltd. ("Hotel Okura") announced on August 6 that it had entered into an agreement with Japan Airlines International Co., Ltd. ("JALI") to acquire 79.6% of the issued shares of JAL Hotels Co., Ltd ("JAL Hotels") held by JALI.
Hotel Okura's objective is to strengthen global competitiveness and establish its position as a Japan-originating global hotel chain that contributes to Japan's hotel industry. The company operates mainly in Japan and other Asian regions, and strives to become the number one hotel in each destination.
JAL Hotels is a leading Japanese hotel chain operator that boasts both top-class sales and a leading network. The hotel chain made its reputation abroad, especially in the growing Asian market, with its top-notch quality.
Showing great affinity for each other as partners who share corporate direction and vision, Hotel Okura and JAL Hotels expect that the business synergy from the strong alliance produced through the transaction described in this announcement will not only deliver merit in terms of group size, international competitiveness and enrichment of human resources, but will also generate varied positive effects in areas such as marketing, business development, further expansion of existing training programs, information sharing and increased valuation of the brand overall.
2. Method of Acquisition
This is an all-cash stock acquisition to obtain 6,800,000 shares (79.6%) currently owned by JALI.
August 6 2010:
Execution of the share transfer agreement
September 30 2010:
4. Post-acquisition prospects
As a result of the transaction described in this announcement, JAL Hotels and Hotel Okura will partner to form a cooperative framework. Hotel Okura believes that by combining "the guest house of Japan" with "the wings of Japan," it is poised to be the only hotel chain in the world that offers Japanese hospitality, comfort and hotel services.
Additionally, after acquisition, Hotel Nikko and Hotel JAL City will retain their names. Various programs, gift certificates, coupons and other marketing programs related to JAL mileage will also continue.
SOURCE Hotel Okura Co., Ltd.