Murakami-linked fund backs out of bid for Japan Asia Group


TOKYO: A Japanese fund backed by veteran activist investor Yoshiaki Murakami cancelled its offer for energy and environment firm Japan Asia Group (JAG), after pressuring private equity firm Carlyle Group to withdraw a competing bid last month.

On Wednesday, City Index Eleventh said it was withdrawing its bid after JAG refused to cooperate with its efforts to carry out due diligence and announced a large, special dividend.

Murakami is one of Japan's few, well-known activist shareholders. His typical strategy includes building up a stake in a company in the middle of a takeover and demanding that management boost its sale price.

He was convicted of insider trading in 2007, but has resurfaced in recent years as an investor, agitating for change at companies including Toshiba Machine.

Carlyle had teamed up with JAG Chairman and Chief Executive Officer Tetsuo Yamashita in November for a management buyout of JAG, but gave up on its bid in February after City Index Eleventh built a stake in the company and offered a higher bid to buy the rest of the shares.

JAG shares were halted on the Tokyo Stock Exchange after trading earlier at around 1,083 yen. City Index Eleventh had offered 1,210 yen per share, more than double Carlyle's initial offer of 600 yen and beating a later offer of 1,200 yen. ($1=106.8700 yen) - Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
   

Next In Business News

Ringgit opens lower as US Teasury yields ease
Quick take: UCrest jumps 24%, most active on Bursa
Foreign investors turn net sellers with RM235.26mil net outflow
Rewarding entrepreneurs who rise to the challenge
A revolution in cleaning
KLCI opens weaker on resurgence of Covid infections
Quick take: Magna Prima falls after auditors' highlight 'material uncertainty'
Driven to excel
Trading ideas: Central Global, Dynaciate Group, Transocean Holdings
MIDF cuts earnings outlook on Capitaland Malaysia Mall Trust

Stories You'll Enjoy


Vouchers