Tokyo high court rejects request for injunction against Tokyo Kikai poison pill - court document (updated)
09/11/2021 08:39
(Adds background, details)
TOKYO, Nov 9 (Reuters) - The Tokyo High Court on Tuesday
rejected Asia Development Capital's 9318.T 's request for an
injunction against Tokyo Kikai Seisakusho Ltd's 6335.T planned
use of a poison pill, according to the court ruling seen by
Reuters.
The decision is likely to spark concern among foreign
investors and could cast a shadow over the future of hostile
takeover bids in the world's third-largest economy.
Asia Development Capital (ADC), which built up a 40% stake
in Tokyo Kikai Seisakusho in a matter of weeks to become its
largest shareholder, had sought to stop the manufacturer of
newspaper printing presses from issuing a poison pill.
Shareholders in Tokyo Kikai, excluding ADC, had approved an
issuance of new shares that would dilute the fund's stake and
prevent it from mounting a takeover.
ADC had already sought to block the share issue, but had
that request for an injuction rejected by a lower court. It then
appealed to the Tokyo High Court, which rejected it on Tuesday.
A victory for Tokyo Kikai holds the potential to make it
much easier for other Japanese companies to use poison pills.
(Reporting by Makiko Yamazaki, writing by Ju-min Park; Editing
by Kirsten Donovan)
((ju-min.park@thomsonreuters.com; Reuters Messaging:
ju-min.park.thomsonreuters.com@reuters.net))