* Accordia says PGM bid won't bring best benefits to
* Says will more than triple annual dividend to 5,500 yen a
* PGM says increase in dividend to hurt growth strategy
(Adds reaction from PGM, paragraphs 6-7)
TOKYO, Dec 3 Japan's No.1 golf course operator
Accordia Golf Co mounted a defence against a hostile
takeover bid by smaller rival PGM Holdings KK, saying
the bid will lower value for its shareholders and announcing it
will more than triple annual dividend.
PGM, Japan's No.2 golf course operator, 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
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. Accordia shares traded at 78,000 yen at 5:11 GMT, a 47
percent rise since the close of Nov. 15 when the offer was
"Our board members today came to the consensus that the
tender offer is not going to result in the maximum benefit of
our shareholders. It could even infringe their benefit,"
Accordia said in a statement on Monday, in its first comments on
the bid. It urged shareholders to not sell their shares in the
Accordia said it will raise the annual dividend payment to
5,500 yen per share from 1,600 yen, adding that the company
would use extra cash to increase shareholder value rather than
acquisitions of golf courses.
But PGM said that the increase in dividend payment will not
help Accordia boost its corporate value over the longer term.
Accordia could boost its value only by combining its
operations with PGM, not by giving short term shareholder
returns, it added. PGM will keep its offer price at 81,000 yen.
Accordia was originally set up by Goldman Sachs.
($1 = 82.4700 Japanese yen)
(Reporting by Junko Fujita and Mayumi Negishi; Editing by
Muralikumar Anantharaman and Sanjeev Miglani)