Toho Holdings (HD) had its takeover defense measures rejected by the Tokyo District Court in connection with its takeover proposal for PHCHD. The proposal appears to have collapsed in about a week, intensifying the battle with activists.
In early October, a legally non-binding initial takeover proposal for PHCHD was reported. Toho Holdings commented that it was considering the proposal, while PHCHD acknowledged that it had received it.
However, market participants suspected that the proposal was less a measure to enhance corporate value than a takeover defense measure against pressure from activists.
Toho Holdings was subsequently said to have scrapped the takeover proposal, and the Tokyo District Court’s rejection of the takeover defense measures has strengthened the view that it was a “phantom proposal.”
Attention will now focus on developments in the battle with activists, the merits of the company’s defense measures and the market’s response.