Japan's Maeda Road Construction opposes takeover bid by Maeda Corp (updated)

Shibaura Machine

24/01/2020 09:37

(Adds details)
    TOKYO, Jan 24 (Reuters) - Japanese road paving company Maeda
Road Construction  1883.T  said on Friday it would oppose a
tender offer by its top shareholder Maeda Corp  1824.T , turning
the proposal into a  hostile bid.
    Construction firm Maeda Corp launched the bid to gain a
controlling stake on Tuesday in a deal potentially worth 86
billion yen ($784 million). Yet Maeda Road wants to cancel a
capital alliance with Maeda Corp, which owns 24.68% of its
shares, and buy back all of its stock.  urn:newsml:reuters.com:*:nL4N29P23T
    "We are opposed to the tender offer by Maeda Corp," Maeda
Road said in a statement. "Becoming a consolidated subsidiary of
Maeda Corp would hurt our corporate value and prevent our
sustainable growth." 
    Maeda Road said it would take necessary measures as soon as
possible, without elaborating. 
    Maeda Corp's bid has become the latest hostile deal in Japan
where unsolicited bids are still rare but are becoming more
accepted as shareholders became more vocal about getting higher
returns and as the domestic market shrinks.  
    This week activist investor Yoshiaki Murakami launched a bid
for a controlling stake in Toshiba Machine Co  6104.T  despite a
threat by the company to implement defence measures against it.
 urn:newsml:reuters.com:*:nL4N29Q0DM
    Maeda Corp has offered to pay 3,950 yen per Maeda Road
share, which closed at 3,650 yen on Friday. 
    It wants to increase its stake in Maeda Road to 51% through
the public tender offer, citing the need to strengthen
collaboration to better respond to labour shortages and ageing
infrastructure.
    The tender offer runs until March 4.
    ($1 = 109.7000 yen)

 (Reporting by Junko Fujita; editing by Jan Harvey and Jason
Neely)
 ((Ritsuko.Ando@reuters.com; +81 3 6441 1743;))