Acquisitions of minority equity stakes in Japanese publiclytraded companies are attracting greater interest from investors,whether as passive investments, strategic acquisitions, or asfirst-step purchases towards a future business combination….
In structuring and negotiating the terms of a minorityinvestment in a company that has shares publicly trading on astock exchange in Japan (a “Public Company”), investors mustunravel a number of issues that may not emerge in a typicalchange of control buyout transaction. Such issues may dependupon the long-term investment strategy of the investor, the sizeof the proposed investment as a percentage of the Public
Company’s outstanding float, the regulatory regimes applicableto the Public Company, and the amount of control that theinvestor seeks over the Public Company.
This Newsletter outlines the main methods of acquiring aminority interest, and then proceeds to highlight some of theissues that investors may wish to consider in connection withplanning a minority investment in a Public Company, and thenconcludes with some thoughts from the perspective of PublicCompany directors facing the prospect of a minority
investment.
Read the Newsletter:
http://bdti.mastertree.jp/f/njf14mcg
The Board Director Training Institute (BDTI) is a "public interest" nonprofit in Japan dedicated to training about directorship, corporate governance, and related management techniques. It is certified by the Japanese government to conduct these activities as a regulated nonprofit. Read a summary about BDTI here, and see a menu of its services for both corporations and investors here.