A Japanese construction company targeted for takeover by the family office linked to Nintendo Co's founder has asked the government to investigate alleged breaches of foreign ownership rules, reports Reuters
(28 March, Yamazaki, Katsumura, Shimizu). Toyo Construction Co, the marine construction company now 27 percent owned by Yamauchi-No.10 Family Office (YFO), made the request to the government this month. The move by Toyo, which maintains port facilities and constructs seawalls and other key parts of infrastructure, shows how rules over national security can increasingly play a role in takeover battles. YFO, which manages nearly US$1.5 billion of assets for members of Nintendo's founding Yamauchi family, last year effectively blocked a takeover attempt for Toyo from an industry rival, saying it would offer a higher price. YFO has amassed most of its stake through three related investment companies registered in the Cayman Islands, each of them with less than 10 percent. Toyo said its businesses are in strategically important "core sectors," meaning that investors are required to report to the government before acquiring a stake of 10 percent or more. Because the three Cayman Islands-registered vehicles are related, Toyo believes YFO violated the rules by not notifying the government beforehand, the company said. Violation of such requirements could result in fines, imprisonment, and other penalties, including the return of all or partial stakes acquired through such investment, according to the government.
From "Takeover Target of Nintendo Founder Family Office Asks for Japan Government Probe"
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