EXCLUSIVE U.S. fund says Japan’s Shimizu should halt bid seen as unfair to minority shareholders

A person walks previous the emblem of Shimizu Corp outdoors a building website in Tokyo, Japan, December 18, 2017. REUTERS/Toru Hanai

TOKYO, March 18 (Reuters) – A U.S.-based fund has referred to as for Japan’s Shimizu Corp (1803.T) to halt a $190 million bid to take management of highway builder Nippon Highway Co Ltd (1884.T), saying the deal can be unfair to minority shareholders and go towards governance reform.

In a letter to Nippon Highway’s board this week that was seen by Reuters, Kaname Capital objected to Shimizu’s bid to double its holding to 50.1%.

Kaname, which owns 1.8% of Nippon Highway, stated the deal would put minority shareholders at a drawback by turning them into traders in a listed subsidiary.

“A partial bid is unsatisfactory. Solely a 100% bid permits for truthful and equal remedy of all shareholders,” the Boston-based long-only fund stated in its letter.

The provide value of 10,000 yen ($84.13) a share was too low given Nippon Highway’s money available, shareholdings and different property, Kaname stated, placing the share worth nearer to 12,500 yen.

Reporting by Makiko Yamazaki; Modifying by David Dolan and Kim Coghill

: The Thomson Reuters Trust Principles.