In a noteworthy development, Nagashima Ohno & Tsunematsu, a widely respected “Big Four” Japanese law firm, has taken on the task of advising Toyo Construction, a marine construction firm listed in Tokyo, as it seeks to fend off an unsolicited buyout offer.
The offer, an $833 million bid, has been put forward by Yamauchi-No.10 Family Office (YFO), an investment firm with ties to the founder of internationally renowned gaming company Nintendo.
Despite the sizable sum involved, Toyo Construction’s board of directors have unanimously opposed YFO’s tender offer for the company’s ordinary shares. The potential deal also includes subsequent squeeze-out procedures, which could see Toyo become a wholly owned subsidiary of YFO.
This information was provided in a December 14 press release issued by Toyo Construction.
Unsolicited takeover bids such as these were once a rarity in Japan, and their completion was often seen as an impossibility. However, as attested by the actions of YFO and Toyo Construction, there has been a steadily increasing number of these offers surfacing in recent years. The engine driving this change appears to be a combination of growing focus on maximizing shareholder value, and heightened awareness of fiduciary duties among Japan’s domestic institutional investors.
For more details, find the original report here.