Japan weighs expanding tender offer rules as unsolicited takeovers rise
02/03/2023 09:16
TOKYO, March 2 (Reuters) - Japan's financial regulator
is considering expanding the range of transactions for which a
tender offer is required, in what would be the first revision of
the country's takeover rules in 17 years, amid a wave of
unsolicited takeovers.
The Financial Services Agency (FSA) on Thursday asked an
expert panel to review takeover regulations, following a sharp
rise in unrestricted stake-building on the market which has led
to unsolicited takeovers.
Currently, an acquirer is required to make a tender offer if
it wants to buy more than a third of a company's shares off
market.
However the rules do not apply to stake-building on the
market, which experts say is a loophole that allows an effective
takeover without other shareholders having a say on the
acquisition.
The issue gained attention when Tokyo-listed Asia
Development Capital (ADC) 9318.T built up most of its 40%
stake in printing press manufacturer Tokyo Kikai Seisakusho Ltd
6335.T on market in a matter of weeks, enough to give it veto
rights over important board decisions.
(Reporting by Makiko Yamazaki; Editing by Sonali Paul)
((Makiko.Yamazaki@thomsonreuters.com; +81-3-4563-2805;))