Japan’s Shinsei Bank mulls steps to fend off $1.1b SBI Holdings bid

The Shinsei Bank logo is pictured at the lobby of the bank in Tokyo October 22, 2010. REUTERS/Yuriko Nakao

Japan’s Shinsei Bank is considering measures to fend off an unsolicited $1.1 billion tender bid by SBI Holdings, the Nikkei financial daily reported on Tuesday.

Shinsei Bank’s board could meet this week to discuss a possible issuance of stock warrants to existing shareholders to dilute the holdings of SBI, which already owns 20% of the Tokyo-based lender, Nikkei said without citing sources.

The bank would then seek shareholders’ approval for the measures in November, it said.

Shinsei Bank is also talking to potential white knights, including Seven & i Holdings and Sony Group Corp, Nikkei reported.

Shinsei Bank had no immediate comment on the report.

Sony and Seven & i, which both have banking businesses, could not be reached for comment outside business hours.

SBI last week announced an offer to buy a near majority stake in Shinsei Bank to take effective control of the lender, as SBI aims to become Japan’s fourth largest banking group.

SBI plans to lift its stake to up to 48%, offering 2,000 yen per share, a 39% premium over the price before the announcement. It plans to keep the lender listed after the tender offer.

SBI’s large premium may make it tough for Shinsei Bank to win the required majority support from shareholders for its defence measures, analysts say.

They also say it would be hard to find rival suitors for the small bank which is still struggling to repay public funds it received during Japan’s 1990s banking crisis.

SBI took a stake in Shinsei Bank after private equity investor JC Flowers & Co sold down its holding in 2019.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.