TOKYO: Japan’s Shinsei Bank announced on Thursday its opposition to an unsolicited tender offer by online financial group SBI Holdings Inc.
SBI’s attempt to take control of the bank will thus develop into a hostile takeover bid, an unusual move in the country’s financial industry.
Shinsei Bank also said that it plans to hold an extraordinary meeting of shareholders on Nov. 25 to seek approval for invoking a takeover defense measure using share-purchase warrants.
The bank made the decisions at a board meeting earlier on Thursday.
Meanwhile, Shinsei Bank said that it will accept the tender offer if SBI scraps the purchase ceiling of 48 pct of the bank’s shares, raises the share buying price, currently set at 2,000 yen each, and meets other conditions.
If the SBI side meets these conditions by Nov. 19, the bank will cancel the extraordinary shareholders’ meeting, it said.
It will be closely watched which of Shinsei Bank or SBI can receive wider support from shareholders with proposals to improve the bank’s value if such a meeting is held.