IWG’s sale of its Japanese business to TKP marks a major shift towards its new franchising business model, according to The Times. Conference room and banqueting hall provider TKP, which operates 249 sites across Japan, is paying £320m in cash for IWG’s network of more than 130 co-working centres, plus a long-term franchising licence that gives it exclusive rights to use IWG’s brands in the country. In an interview with The Times, Mr Smith said he was “delighted” by the deal, adding that his company had been looking at ways to expand into Japan since 2011. He said the transaction realises an attractive valuation for the company’s shareholders and that franchising played an increasingly important role in the group’s strategy.
IWG’s sale of its Japanese business to TKP marks a major shift towards its new franchising business model, according to The Times. Conference room and banqueting hall provider TKP, which operates 249 sites across Japan, is paying £320m in cash for IWG’s network of more than 130 co-working centres, plus a long-term franchising licence that gives it exclusive rights to use IWG’s brands in the country. Mark Dixon, IWG’s CEO and largest shareholder will join the board of TKP as a NED. He said the transaction realises an attractive valuation for the company’s shareholders and that franchising played an increasingly important role in the group’s strategy.