Tokyo Kikai shareholders approve poison pill, setting up court battle (updated)
22/10/2021 12:24
(Adds details and context)
TOKYO, Oct 22 (Reuters) - Shareholders in Tokyo Kikai
Seisakusho Ltd 6335.T approved a "poison pill" measure on
Friday aimed at blocking a takeover attempt by its top investor,
setting up a court battle that will have sweeping implications
for hostile bids in Japan.
Tokyo Kikai, a little known company that is the country's
largest maker of newspaper printing presses, said a majority of
its shareholders approved a measure that would dilute Asian
Development Capital's (ADC) 9318.T 40% stake. urn:newsml:reuters.com:*:nL4N2RD07B
ADC was excluded from the vote and has already sought an
injunction to nullify it. Had investors voted on Friday against
the poison pill it would have handed ADC a victory.
Now, focus will turn to the injunction and the Tokyo
District Court ruling expected next week that will be the first
to examine an attempt to exclude an investor from a shareholder
vote on a poison pill.
A victory for Tokyo Kikai would potentially make it easier
for other Japanese companies to use poison pills.
Tokyo Kikai has said ADC hurts its corporate value, while
the fund argues that a ruling in Tokyo Kikai's favour would fly
in the face of shareholder equality.
The battle highlights both a rise in hostile takeovers in
Japan over the past few years and what some experts see as
inadequate takeover rules that leave companies, especially small
ones, with few defences against hostile bids.
(Reporting by Makiko Yamazaki Editing by Edmund Blair and Mark
Potter)
((Makiko.Yamazaki@thomsonreuters.com; +81-3-4563-2805;))