Japan’s boom in management buyouts looks set for stricter oversight to protect minority shareholders when companies go private.
The Tokyo Stock Exchange will this month consider changes to the Corporate Code of Conduct that would require firms to improve disclosure of assumptions used to calculate the price of buyouts, and to set up a special committee to hear opinions about the proposed deal.
The move shines a light on concerns of minority shareholders that have arisen as buyouts in Japan rose to the highest since 2011. Hedge funds including Hong Kong-based Oasis Management and US-based Curi RMB Capital opposed plans by a major drugmaker to go private in 2023, arguing the price was too cheap.
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