Japanese developer Keihanshin Building opposes activist bid

Keihanshin Building

19/11/2020 10:58

By Junko Fujita
    TOKYO, Nov 19 (Reuters) - Keihanshin Building Co  8818.T ,
an Osaka-based real estate developer, said on Thursday it would
oppose a bid by a Japanese activist fund Strategic Capital, as
it became the latest Japanese company to become the target of a
hostile bid. 
    Strategic Capital this month launched a public tender offer
to increase its stake to around 30% in Keihanshin, which owns
office and retail properties mainly in the Osaka region. 
    Strategic Capital's bid follows the rejection of most of the
proposals it put forward, including the sale of properties and
the return of cash to shareholders, at the company's general
shareholders' meeting in June. 
    Keihanshin said in a statement that Strategic Capital's
proposals would not contribute to the company's long-term growth
and the investment fund was only seeking short-term profits.
    Shares in Keihanshin have risen by 11.6% since Nov. 2, a
business day after the tender offer was launched. The shares
closed at 2,090 yen on Thursday, above Strategic Capital's offer
price of 1,900 yen per share.  
    The tender offer is conducted by Strategic Capital and
another fund, which together own a 9.7% stale in the company.
They are seeking to acquire a roughly 20% stake through the
offer that runs until Dec. 17.
    Strategic Capital has been calling for Keihanshin to boost
shareholder value since 2018.

 (Reporting by Junko Fujita; editing by Barbara Lewis)
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