The Tokyo District Court on Friday told Japan Engineering Consultants Co. it could execute a stock split to protect itself from a hostile takeover bid by Yumeshin Holdings Co.
Presiding Judge Yasushi Kanokogi ruled Japan Engineering’s 5-for-1 stock split should be allowed as it had “no intent to defend the management’s own interests” and would not change existing shareholders’ rights.
The ruling was final as both parties had agreed beforehand not to appeal the decision.
Yumeshin, a construction management firm, had asked for a court injunction to prevent Japan Engineering from implementing the stock split in the nation’s first case of an attempted takeover of a company that had defensive measures in place.
On July 20, Yumeshin launched a public tender offer for Japan Engineering’s shares to raise its stake in the construction consultancy to 53.71 percent from about 7 percent. The offer will end Aug. 12.
Japan Engineering said the following day it would carry out the stock split and Yumeshin immediately filed for an injunction.
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