Shinsei Bank plans poison defense against SBI’s $ 1.1 billion offer – sources


TOKYO, Sept. 17 (Reuters) – The board of directors of Japan’s Shinsei Bank (8303.T) has decided to use the poison pill against an unsolicited $ 1.1 billion bid from SBI Holdings (8473. T), said sources familiar with the matter. Friday.

Tokyo-based Shinsei plans to issue stock warrants to existing shareholders, which would dilute SBI’s stake, the sources said, who declined to be identified before a Shinsei briefing later in the report. daytime.

Shinsei declined to comment.

The Nikkei business daily reported that Shinsei will seek shareholder approval for the defense at a special meeting in November. Shinsei will also ask SBI to extend its takeover bid period, which is currently scheduled to end on October 25, the newspaper said.

SBI, which owns Japan’s largest online brokerage firm, operates an online bank and owns stakes in regional banks, last week announced plans to increase its stake in Shinsei to 48% from 20%. It is offering 2,000 yen per share, a 39% premium over the Shinsei share price before the announcement.

The high premium can make it difficult for Shinsei to get the required majority support from shareholders.

Much could depend on how the Japanese government, which owns 22% of Shinsei, votes. Shinsei still owes the government 350 billion yen ($ 3.2 billion) after receiving public funds during the banking crisis in Japan two decades ago.

Shinsei is in talks with other potential suitors as well, but it has been difficult to find a loan to exceed 2,000 yen per share, the sources said.

($ 1 = 109.8200 yen)

Reporting by Makiko Yamazaki; Editing by Himani Sarkar and Edwina Gibbs

Our Standards: Thomson Reuters Trust Principles.


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