ID :
19302
Sat, 09/13/2008 - 10:50
Auther :
Shortlink :
https://oananews.org//node/19302
The shortlink copeid
High court raises Rex Holdings' MBO price
TOKYO, Sept. 12 Kyodo - The Tokyo High Court on Friday dismissed a lower court ruling and raised the price for Rex Holdings Co.'s management buyout to 336,966 yen per share from 230,000 yen.
Rex Holdings, which operates the Gyu-Kaku barbecue-beef restaurant chain,
bought back all outstanding shares at 230,000 yen per share through a tender
offer launched in November 2006 and went private.
But about 120 shareholders, mostly individuals, filed a complaint with the
Tokyo District Court, claiming that the purchase price was unfairly low.
The district court ruled in favor of Rex Holdings, prompting the plaintiffs to
appeal to the high court.
While MBOs, in which the management of a company purchases a large part or all
of the firm, are increasing in Japan, the latest decision by the high court is
expected to serve as a warning against lax buyouts, analysts said.
Rex Holdings, which operates the Gyu-Kaku barbecue-beef restaurant chain,
bought back all outstanding shares at 230,000 yen per share through a tender
offer launched in November 2006 and went private.
But about 120 shareholders, mostly individuals, filed a complaint with the
Tokyo District Court, claiming that the purchase price was unfairly low.
The district court ruled in favor of Rex Holdings, prompting the plaintiffs to
appeal to the high court.
While MBOs, in which the management of a company purchases a large part or all
of the firm, are increasing in Japan, the latest decision by the high court is
expected to serve as a warning against lax buyouts, analysts said.
