Japanese developer Keihanshin says activist fund Strategic Capital's hostile bid fails

Keihanshin Building

13/01/2021 06:56

TOKYO, Jan 13 (Reuters) - Japanese property firm Keihanshin
Building Co  8818.T  said on Wednesday activist fund Strategic
Capital failed in a hostile bid to boost its stake in the
company. 
    Strategic Capital in November launched a 1,900 yen ($18.33)
per share bid to boost its stake to 30% in Keihanshin, which
owns office and retail buildings as well as data centres mainly
in the Osaka region. Keihanshin had said it would oppose the
bid.  urn:newsml:reuters.com:*:nL4N2I52SW
    "We deeply appreciate many shareholders understood our way
of thinking. We will continue to try to boost our corporate
value and contribute to the benefit of the shareholders,"
Keihanshin said in a statement.
    Shares in Keihanshin fell 5.7% to 1,812 yen after the
announcement. 
    Japan is increasingly attracting activists looking for value
as many companies remain undervalued relative to their assets,
often property. 
    Strategic Capital has been pushing Keihanshin to withdraw
from low-profit margin leasing business, sell all the rental
properties and transform into a management of the real estate
trust. 
    The bid has also highlighted Japan's corporate practice of
cross-shareholdings, which management says is needed to cement
business ties, while critics say it functions to fend off
hostile proposals.  urn:newsml:reuters.com:*:nL1N2IX0E1
    Strategic Capital and another fund, which together own a
9.7% stake in the company, sought to acquire a roughly 20% stake
through the bid.
    
 ($1 = 103.6600 yen)

 (Reporting by Junko Fujita; Editing by Rashmi Aich)
 ((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters
Messaging:junko.fujita.reuters.com@reuters.net;))