Toshiba Machine opposes hostile bid by activist investor Murakami

17 Feb, 2020 11:11
source: Reuters

Japan’s Toshiba Machine (6104.T) said recently it would officially oppose a takeover offer by activist investor Yoshiaki Murakami and hold a shareholders meeting on March 27 to seek approval for the adoption of defense measures.

The former Toshiba Corp (6502.T) unit said the decision is based on a conclusion drawn up by an independent committee that discussed Murakami’s proposal.

Hostile bids are rare in Japan

A fund called City Index Eleventh Co. backed by Japan’s most prominent activist investor Yoshiaki Murakami said on January 21st, it is launching a takeover bid of up to ¥25.9 billion for Toshiba Machine Co., even though the former Toshiba Corp. unit has threatened to implement defense measures.

Hostile bids are rare in Japan but have been increasing as the government promotes corporate governance reform to make management more accountable to investors.

City Index Eleventh Co., said it will offer ¥3,456 per Toshiba Machine share to buy up to 43.82 percent of the molding machine company, spending up to ¥25.9 billion.

The offer price represents an 11 percent premium over Toshiba Machine’s close on January 17th, when the company revealed the Murakami fund group’s buyout plans. The shares plunged 10 percent Tuesday after shooting up 19 percent Monday.

Toshiba Machine said late Friday it could adopt poison pill measures to fend off acquisition attempts by diluting the holdings of unwanted suitors.