TOKYO : Shareholders of Japan’s Toyo Construction on Tuesday approved seven of nine directors backed by the family office linked to Nintendo’s founder, allowing these directors to form a majority of the board.
The results are a major win for Yamauchi-No.10 Family Office (YFO), the largest investor with a 28.51 per cent stake in Toyo, as it seeks to take the $690 million marine construction firm private and to reshuffle the board that has resisted its buyout offer.
At Toyo’s annual general meeting, shareholders voted in favour of just six out of 11 director nominees backed by the company, including a senior company executive that Toyo was planning to appoint as president.
YFO last year offered to pay 1,000 yen ($6.97) per Toyo share, higher than a 770 yen per share offer from an industry rival that Toyo had endorsed at the time.
It took about nine months for the company to form a special committee to assess YFO’s proposal, which YFO criticised as acting against shareholders’ interest.
YFO said in a statement after the meeting that it plans to engage in discussions with the new board about measures to improve corporate value, including its takeover proposal.
Toyo shares have risen 24 per cent this year to already exceed YFO’s 1,000 yen offer price, as the takeover battle prompted Toyo to boost shareholder returns and accelerate the offshore wind power business as a growth driver.
($1 = 143.5200 yen)
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