PGM fails to get majority stake in Accordia - Nikkei

Thu Jan 17, 2013 3:27pm EST

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Jan 18 (Reuters) - PGM Holdings KK, Japan's second-largest golf course operator, failed in its hostile bid to buy a majority stake in bigger rival Accordia Golf Co , the Nikkei reported citing sources.

PGM launched a 42.4 billion yen ($514 million) open offer in November to win up to 51 percent control of Accordia Golf to boost its profits in the shrinking industry.

Last month, Accordia said it would raise its annual dividend payment to 5,500 yen per share from 1,600 yen and would use extra cash to increase shareholder value rather than acquisitions of golf courses.

PGM, which was originally set up by a U.S. investment fund Lone Star, had offered 81,000 yen each for 524,105 shares of Accordia. (Reporting by Supantha Mukherjee in Bangalore; Editing by Joyjeet Das)

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