Shinsei Bank’s poison pill defense wins the support of another proxy advisor

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Adds foreign ownership, context

TOKYO, November 8 (Reuters)The US proxy consulting firm ISS, together with Glass Lewis & Co, recommends the shareholders of the Japanese Shinsei Bank Ltd 8303.T Vote for the lender’s plan for a poison pill defense against an unsolicited $ 1.1 billion offer from SBI Holdings Inc 8473.T.

In a November 7 statement, ISS said the takeover defense was partially justified because Shinsei Bank “appears to be trying to use the pill as a negotiating tool with SBI Holdings to achieve better terms by attaching two reasonable terms, from which shareholders should benefit “. . “

Recommendations from ISS and Glass Lewis usually affect the coordination of foreign investors. These investors make up nearly 30% of Shinsei’s registered shareholders.

Midsize bank Shinsei defied SBI’s approach last month, saying the offer could harm the interests of minority shareholders and that the offer price was too low. SBI, which owns an online broker and bank, owns around 20% of Shinsei and plans to increase that to up to 48%.

SBI, which said it could overtake the midsize lender, has promised to make every effort to repay the 350 billion yen ($ 3.09 billion) in public money that Shinsei received during a banking crisis two decades ago.

On Friday, Glass Lewis said SBI had “not offered a reasonable plan to address this issue” to investors.

Shinsei’s shares were down nearly 3% in Monday morning trading, compared with a 0.2% decline in the benchmark Nikkei index .N225.

($ 1 = 113,3500 yen)

(Reporting by Makiko Yamazaki; writing by Christopher Cushing; editing by Chang-Ran Kim and Muralikumar Anantharaman)

(([email protected]; + 81-3-4520-1228))

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.


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