Toyo shareholders support board backed by Nintendo founder's family office

Young Fast Optoelectronics

27/06/2023 08:36

By Makiko Yamazaki
       TOKYO, June 27 (Reuters) - Shareholders of Japan's Toyo
Construction  1890.T  on Tuesday approved seven of nine
directors backed by the family office linked to Nintendo's
 7974.T  founder, allowing these directors to form a majority of
the board.
    The results are a major win for Yamauchi-No.10 Family Office
(YFO), the largest investor with a 28.51% stake in Toyo, as it
seeks to take the $690 million marine construction firm private
and to reshuffle the board that has resisted its buyout offer.
    At Toyo's annual general meeting, shareholders voted in
favour of just six out of 11 director nominees backed by the
company, including a senior company executive that Toyo was
planning to appoint as president.
    YFO last year offered to pay 1,000 yen ($6.97) per Toyo
share, higher than a 770 yen per share offer from an industry
rival that Toyo had endorsed at the time.
    It took about nine months for the company to form a special
committee to assess YFO's proposal, which YFO criticised as
acting against shareholders' interest.
    YFO said in a statement after the meeting that it plans to
engage in discussions with the new board about measures to
improve corporate value, including its takeover proposal. 
    Toyo shares have risen 24% this year to already exceed YFO's
1,000 yen offer price, as the takeover battle prompted Toyo to
boost shareholder returns and accelerate the offshore wind power
business as a growth driver.


($1 = 143.5200 yen)

 (Reporting by Makiko Yamazaki, Editing by Louise Heavens)
 ((Makiko.Yamazaki@thomsonreuters.com; +81-3-4563-2805;))