Japan Engineering Consultants Co. on Thursday defended its stock split against a hostile bid by construction engineering firm Yumeshin Holdings Co. as an appropriate measure during its general shareholders meeting in Tokyo.
During Japan Engineering's general shareholders meeting, Yumeshin, which still holds an equity stake in JEC, criticized the move as being designed to protect Japan Engineering's management.
Yumeshin failed in its hostile bid for Japan Engineering in August.
Yumeshin launched a 24-day public tender offer in July in an effort to make Japan Engineering a subsidiary through a hostile takeover. Japan Engineering then implemented a 5-for-1 stock split to ward off the bid.
Yumeshin asked the Tokyo District Court to issue an injunction against the stock split, but the court rejected the request.
Later, Eight Consultants Co. emerged as a white knight to acquire Japan Engineering in a friendly manner. Yumeshin eventually failed to buy out a controlling stake in Japan Engineering by the end of the public tender offer period.
At Thursday's meeting, Yumeshin complained that Japan Engineering managers designed the stock split to protect themselves at the cost of offering choices for the shareholders.