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(Update) Murakami's Fund Launches Tender Offer for New Japan Radio

Posted on: Monday, 21 November 2005, 18:00 CST

Tokyo, Nov. 21 (Jiji Press)--An investment fund led by high- profile investor Yoshiaki Murakami on Monday launched a tender offer for New Japan Radio Co. , challenging a similar move by Nisshinbo Industries Inc. .

The fund, affiliated with the former trade bureaucrat's M&A Consulting Inc., offered to buy 18,565,000 shares in New Japan Radio, an electronic parts maker, at 900 yen apiece, 60 yen higher than Nisshinbo's bid.

New Japan Radio is owned 50.49 pct by Japan Radio Co. , a radio communications equipment maker. Textile maker Nisshinbo is the top shareholder of Japan Radio with a 19.3 pct stake.

During Nov. 9-29, Nisshinbo hopes to buy at least 18.77 million New Japan Radio shares, or a stake of 50.49 pct, at 840 yen each, aiming to raise its stake to 52.63 pct from the current 2.14 pct. Japan Radio has expressed an intention to sell its holdings in New Japan Radio to Nisshinbo in response to the tender offer.

Murakami's fund said that Nisshinbo's offer seems to be intended mainly to purchase the New Japan Radio shares held by Japan Radio, noting that the 50.49 pct interest Nisshinbo aims to acquire equals the current ownership share of Japan Radio.

All shareholders of New Japan Radio should be given equal opportunities to sell their holdings at premium prices, the fund said. Japan Radio likely has neglected to make efforts to find the best buyer of the subsidiary's shares at the best price, out of consideration for its top shareholder, Nisshinbo, it added.

In Monday's trading on the Tokyo Stock Exchange, shares of New Japan Radio drew active purchases and surged to 939 yen with a daily limit gain of 100 yen from Friday's close.END

Source: Jiji Press English News Service

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