Pan Pacific International Holdings (PPIH) is reportedly expected to acquire the Toys “R” Us Japan business, with the transaction expected to involve the transfer of approximately 150 stores in Japan. The formal acquisition terms have not been confirmed, and further disclosure is reportedly needed on the size of the purchase price and the scope of the assets to be transferred.
PPIH is reportedly expected to acquire the Japanese business of Toys “R” Us, the Japanese toy brand, and may take over the operation of approximately 150 stores in Japan, including Babies “R” Us locations. The matter is being treated as a report, and the formal contractual terms are reportedly expected to be disclosed at a later date.
Reports of the withdrawal do not constitute an announcement that all stores will close. They reportedly center on the continuation of store operations and the transfer of the business. The scope of the transfer of sales and employment is expected to vary depending on the acquisition terms.
If the acquisition goes ahead, PPIH will be able to add specialist toy and baby-product sections, but improvement in profitability is reportedly predicated on reducing procurement, inventory and store-operating costs. The terms presented in earnings briefings and the formal announcement are expected to determine the future impact.
PPIH’s share price is reportedly expected to be influenced by both expectations for the acquisition and profit growth in its existing businesses. Its valuation is expected to change depending on when the acquisition terms and the plan to return to profitability are disclosed.