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Ricoh to sell back Coca-Cola shares?

February 27, 2018

The OEM has issued a notice regarding a tender offer it received from Coca-Cola Bottlers Japan Holdings Inc to repurchase its own shares.

According to Ricoh, the OEM “resolved” at a Board of Directors meeting held on 21 February 2018 “to tender all Ricoh owned shares of the Coca-Cola Bottlers Japan Holdings Inc under a tender offer proposed” by Coca-Cola.

This decision falls under the auspices of Ricoh’s three-year “19th Mid-Term Management Plan”, which the OEM kicked off in 2017. Using this plan the OEM is seeking “to prioritise structural reforms, expand growth businesses, and to reinforce its management system.”

Ricoh published its growth strategy and priorities at an investors meeting held on 6 February 2018 and “established how it intends to expand its customer base resulting from new opportunities being created by leveraging its expertise in printing technologies.”

In addition, the OEM has stated that it “intends to add Ricoh-oriented value to its customer base by connecting offices to the frontlines. As part of this strategy, Ricoh announced at the meeting its plan to invest ¥200 billion ($1.8 billion/€1.5 billion) in M&A.”

Ricoh has “carefully evaluated” the Coca-Cola tender offer in line with its desire to undertake “a comprehensive review of its business and assets”, and has decided to tender the shares “due to the fact that the conditions, including the tender office price, represented fair market value.”

The funds resulting from the re-selling of Ricoh’s shares back to Coca-Cola will be used as “an investment resource” by the OEM.

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