Japan's LIXIL denies report it considered MBO, move to Singapore (updated)
21/01/2019 01:36
* LIXIL shares up 7 percent
* Reported plan comes after management change late last year
* Would be rare instance of Japan firm moving overseas
(Adds company statement, share price)
TOKYO, Jan 21 (Reuters) - LIXIL Group Corp 5938.T on
Monday denied a report it had considered delisting from Japan
through a management buyout (MBO) and moving its headquarters to
Singapore, but investors welcomed the report anyway, sending the
stock up 7 percent.
The Nikkei Business reported on Monday that LIXIL's board
decided last year to consider the plan, which had been opposed
by former President and Chief Executive Kinya Seto, who abruptly
resigned in late October.
LIXIL, which makes housing products such as toilets and
windows, is now headed by Chairman and Chief Executive Officer
Yoichiro Ushioda, who hails from the founding family.
"LIXIL Group confirms that there has been no such agreement
nor consideration made by the board of directors and that this
(report) is not factual," LIXIL said in a statement.
Shares in LIXIL were up 7 percent at 10:21 a.m. (0121 GMT)
on the Tokyo Stock Exchange after trading was suspended for
about an hour pending the company's statement.
A delisting in favour of an overseas bourse would be a rare
move by a Japanese company.
(Reporting by Chang-Ran Kim; Editing by Stephen Coates and
Christopher Cushing)
((ran.kim@thomsonreuters.com; +81-3-6441-1804; Reuters
Messaging: ran.kim.reuters.com@reuters.net))