Shareholders of Cosmo Energy Holdings approved a "poison pill" takeover defense on Thursday, in a controversial vote that excluded certain activist shareholders and has implications for hostile takeover attempts in Japan.
It marks the second such vote on a poison pill in Japan that excludes an investor, a so-called majority-of-minority vote, in a practice some governance experts say could serve as a new weapon against shareholder activism.
Cosmo, Japan's third-biggest oil refiner and 20% owned by a group led by prominent activist Yoshiaki Murakami, can now implement a poison pill to dilute the activists' stake if the group buys more shares without taking steps such as stating its purpose.