Japan’s Shinsei Bank has officially rejected the takeover bid by SBI Holdings (SBI) and has proposed new terms for the latter’s tender offer.
Shinsei Bank announced the decision after a board meeting, which could force SBI into what is being described as a rare hostile takeover bid in Japan’s banking sector.
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Shinsei Bank has asked SBI to remove the limit on its share purchase and pay over $1.1bn in its existing offer.
The bank has also decided to hold an extraordinary shareholders’ meeting on 25 November 2021 to secure support for its defensive measures against the proposed SBI deal.
However, Reuters reported that SBI has rejected the new conditions. SBI, which already owns 20% of the Japanese lender, is looking to raise its holding to 48% through a tender offer launched last month.
Shinsei is concerned that its shareholders, who are against the proposed bid, may sell their stakes in order to avoid becoming minority investors in the bank if the deal is realised.
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By GlobalDataThe board of directors was recommending shareholders to not take part in the tender offer made by SBI, Reuters reported citing Shinsei chief executive Hideyuki Kudo.
As per media reports, if the takeover materialises, SBI may remove some or all the current Shinsei Bank management.
Notably, the Japanese government also holds around a 20% stake in the Shinsei Bank.
