Tokyo Kikai shareholders approve poison tablet, setting up court battle

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TOKYO, Oct 23 (Reuters) – Shareholders in Tokyo Kikai Seisakusho Ltd (6335.T) permitted a “poison pill” measure on Friday aimed toward blocking a takeover try by its prime investor, setting up a court battle that can have sweeping implications for hostile bids in Japan.

Tokyo Kikai, somewhat identified firm that’s the nation’s largest maker of newspaper printing presses, stated a majority of its shareholders permitted a measure that might dilute Asia Development Capital’s (ADC) (9318.T) 40% stake. learn extra

ADC was excluded from the vote and has already sought an injunction to nullify it. Had buyers voted on Friday towards the poison tablet it will have handed ADC a victory.

About 79% of the votes supported the poison tablet, Tokyo Kikai stated in an announcement. ADC stated Tokyo Kikai would have misplaced if ADC had not been excluded, because the variety of votes solid for the poison tablet have been fewer than these ADC might have solid alone.

Now, focus will flip to the injunction and the Tokyo District Court ruling anticipated subsequent week that would be the first to look at an try and exclude an investor from a shareholder vote on a poison tablet.

A victory for Tokyo Kikai would probably make it simpler for different Japanese corporations to make use of poison capsules.

Tokyo Kikai has stated ADC hurts its company worth, whereas the fund argues {that a} ruling in Tokyo Kikai’s favour would fly within the face of shareholder equality.

The battle highlights each an increase in hostile takeovers in Japan over the previous few years and what some consultants see as insufficient takeover guidelines that go away corporations, particularly small ones, with few defences towards hostile bids.

Reporting by Makiko Yamazaki Editing by Edmund Blair, Mark Potter and Himani Sarkar

The logo of Tokyo Kikai Seisakusho Ltd. is displayed at the company headquarters office in Tokyo, Japan October 21, 2021. REUTERS/Issei Kato/File Photo