Japan's Tokyo Kikai to put 'poison pill' on hold as court battle continues

Tokyo Kikai Seisakusho

17/11/2021 13:25

TOKYO, Nov 17 (Reuters) - Japan's Tokyo Kikai Seisakusho Ltd
 6335.T  said on Wednesday it would put on hold its planned use
of a 'poison pill' takeover defence measure against top
shareholder Asia Development Capital (ADC)  9318.T  as the fund
offered to lower its stake to 32.72%.
    Tokyo Kikai, the manufacturer of newspaper printing presses,
said it would review ADC's offer before making a decision to
officially suspend plans to issue new shares that would dilute
ADC's 40% stake.
    ADC said in a separate statement that while it agreed to cut
the stake, it would still seek an injunction against the poison
pill. It has appealed to Japan's supreme court after the Tokyo
High Court dismissed its appeal of a lower court ruling against
it.  urn:newsml:reuters.com:*:nL1N2S00FR
    Tokyo Kikai excluded ADC from a shareholder vote on the
poison pill, which the fund says would fly in the face of
shareholder equality. A court victory for Tokyo Kikai holds the
potential to make it much easier for other Japanese companies to
use poison pills.  urn:newsml:reuters.com:*:nL4N2RD07B

 (Reporting by Makiko Yamazaki;
Editing by Bernadette Baum)
 ((Makiko.Yamazaki@thomsonreuters.com; +81-3-4563-2805;))