Cerberus Capital Management has secured the right to veto major board decisions by Seibu by lifting its stake in the Japanese hotel and rail operator to more than one third.
The private equity firm has lifted its shareholding in Seibu to 35.48 per cent from 32.7 per cent via a tender offer which expired on Friday, falling short of its goal of a 44.7 per cent stake, which would enable it to take control of management.
Cerberus also wanted to appoint eight new directors, which would give it nine out of 18 seats on the board.
Seibu’s management had opposed Cerberus’ efforts to up its stake with president Takashi Goto saying no concessions would be made to Cerberus. Goto said the proposals from Cerberus would hurt Seibu’s mid- and long-term strategy.
Seibu has reiterated its opposition to the plan, urging its shareholders to vote against Cerberus’ board nominees at the June 25 meeting.
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