{ "docId": "019dd923-622b-71dc-a6dd-47ef716cd202", "docSlug": "74b90876aab8", "documentTitle": "N/A (Japanese M&A regulatory guidelines; Alps Alpine cited as precedent)", "authorId": "25_Oasis_Management", "authorName": "Norie Hata", "documentKindSlug": "other", "documentKindLabel": "Other", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2019-06-06 00:00:00", "orientation": "landscape", "aspectRatio": 1.4148802, "pageNumber": 2, "pageCount": 6, "prevPage": 1, "nextPage": 3, "slideType": "other", "function": "establish_context", "density": "overcrowded", "nDataPoints": 0, "notes": "This is a text-heavy news summary page from Dealreporter.", "elementsJson": [ "paragraph" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6dd-47ef716cd202/2", "deckHref": "/decks/019dd923-622b-71dc-a6dd-47ef716cd202", "deckJsonHref": "/decks/019dd923-622b-71dc-a6dd-47ef716cd202.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6dd-47ef716cd202#slide-2", "components": [ { "bbox": { "h": 0.03, "w": 0.9, "x": 0.05, "y": 0.48 }, "kind": "callout", "text": "Special committee acts as agent for minority shareholders", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4acd174e-a597-4b73-88fc-0c9f97eefd57", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.9, "x": 0.05, "y": 0.63 }, "kind": "paragraph", "text": "Moreover, the special committee should be comprised of independent directors, elected by shareholders and who could be sued by shareholders if there is any failure of a good director's duty of care, the draft guidelines state.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "06320f7c-9241-431d-84b2-bb5f78a05b60", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.38 }, "kind": "paragraph", "text": "MBOs and the acquisition of a controlled company by its controlling shareholder are regarded as problems in the Japanese M&A space because these cases are affected by the issues of conflict of interest and information asymmetry, the draft guidelines said.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "436a2940-b770-4557-9bb4-27873e8bb22f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.9, "x": 0.05, "y": 0.18 }, "kind": "paragraph", "text": "Fresh guidelines, which Meti is expected to come up with by the end of June, drastically boost the role of special committees, especially, independent directors, in the case of MBOs and the acquisition of a controlled company by its controlling shareholder, said Riwa Sakamoto, director of the corporate system division at Meti.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a8acb37d-1719-433e-b63b-2d853be49715", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.9, "x": 0.05, "y": 0.71 }, "kind": "paragraph", "text": "The old 20-page MBO guidelines simply suggested - just in a page or two - the target company listen to the opinion of independent directors or a third-party committee. But the new guidelines, which are comprised of 50 pages, has dedicated as many as 10 pages solely to the discussion of the role of a special committee - the focal point of which is that independent directors should be an agent of shareholders, according to Sakamoto.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bde8ec7b-3018-4bed-b156-05f652ad1330", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "paragraph", "text": "The study group's move follows concerns that the 2007 MBO guidelines needed to be revised to include other conflict of interest M&A transactions as well as to support the progress of corporate governance reform and the recent increase in the number of independent directors in corporate Japan.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c8f9629c-1401-46ef-a1cc-d6b0a41a7022", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.29 }, "kind": "paragraph", "text": "A target company will be urged to consult with its special committee on the legitimacy and conditions of the M&A transaction in question, entrust the special committee with negotiations with the buyer and respect the decision by the special committee, the draft guidelines said.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d2b242a1-efcd-43b7-87ce-9fda8b94e332", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.9, "x": 0.05, "y": 0.52 }, "kind": "paragraph", "text": "\"Special committees play a key role in the new guidelines [in resolving the problem of conflict of interest and information asymmetry]. They also exert the utmost effort to maximize the benefit of minority shareholders, just like the situation that could be achieved by the merger between two independent partners where there is no conflict of interest,\" said Meti's Sakamoto.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e4bc73ea-3d17-4108-bfdd-0f305807eee8", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "Special committees play a key role in the new guidelines [in resolving the problem of conflict of interest and information asymmetry]. They also exert the utmost effort to maximize the benefit of minority shareholders, just like the situation that could be achieved by the merger between two independent partners where there is no conflict of interest — Riwa Sakamoto, director of the corporate system division at Meti.", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0f1d-76e6-870b-744b7ba27ea4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.9, "x": 0.05, "y": 0.05 }, "kind": "title", "text": "Japan's new Meti driven M&A guidelines boost special committee, independent directors roles | Dealreporter", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a1ea3109-d608-4509-9a77-585ba9aeddb6", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Audience Definition", "slug": "audience-definition", "agent": "Storyteller", "layer": "slide", "matchId": "6cdb2133-fc14-45d3-b0cd-726b47f2eaa6", "evidence": "The old 20-page MBO guidelines simply suggested - just in a page or two - the target company listen to the opinion of independent directors or a third-party committee.", "confidence": 0.7 }, { "name": "Governance critique", "slug": "governance", "agent": null, "layer": "slide", "matchId": "66f65904-270f-4318-bf03-6b31d4fdd30e", "evidence": "Special committees play a key role in the new guidelines [in resolving the problem of conflict of interest and information asymmetry].", "confidence": 0.7 } ], "frameworks": [], "arcBeats": [ { "to": 5, "from": 2, "beatId": "950ef088-1e9c-4484-96c5-2db6e16ffbf4", "arcName": "The Sparkline", "arcSlug": "sparkline", "beatName": "Evidence", "beatSlug": "evidence", "evidence": "The document provides evidence and details about the guidelines.", "position": 1, "confidence": 0.7, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }