Japan’s Deposit Insurance Corp to oppose Shinsei’s poison pill defence against SBI

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

Government-owned Deposit Insurance Corp of Japan (DICJ) is planning to vote against Shinsei Bank’s poison pill defence aimed at blocking SBI Holdings Inc’s $1.1 billion bid, public broadcaster NHK reported on Tuesday.

How the government votes on the defence strategy at a shareholders meeting this week has been in focus as proxy advisory firms have sided with Shinsei, possibly swaying the vote of foreign investors who account for nearly 30% of registered shareholders.

The government and SBI each own about 20% of Shinsei. DICJ could not immediately be reached for comment.

Sources – both for and against Shinsei’s strategy – have said a government vote against the poison pill would almost certainly defeat Shinsei’s plan, with some hedge fund investors in favour of SBI’s bid.

The Nikkei business daily said City Index Eleventh, a fund backed by activist investor Yoshiaki Murakami that holds about a 4% voting stake, would not vote in favour of Shinsei’s plan. City Index Eleventh could not immediately be reached for comment.

Online financial group SBI announced an offer to take a near-majority stake in the mid-sized Tokyo-based lender in September – an unsolicited bid that met immediate opposition from Shinsei’s management.

Proxy advisory firms Glass Lewis & Co and Institutional Shareholder Services Inc (ISS), meanwhile, have recommended shareholders vote for the lender’s plan, with the latter saying SBI’s partial offer would leave shareholders unable to tender. Recommendations from the two typically impact how foreign investors vote.

The SBI-Shinsei battle comes at a time Japan is witnessing a rise in hostile takeovers. But investors are also watching to see if, under a new prime minister, it will roll back some pro-market policies.

Shinsei Bank is due to hold an extraordinary shareholders meeting on Thursday to put the poison pill defence to a vote.

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).

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

  • 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.