Minebea Mitsumi settles takeover norms violation case with Sebi; pays Rs 17 lakh

By: |
April 23, 2021 4:03 PM

Minebea Mitsumi Inc has settled with Sebi a case of alleged delay in making a public offer in respect of the acquisition of shares in Jay Ushin Ltd, on payment of a little over Rs 17 lakh towards settlement charges.

Pursuant to the application, Minebea Mitsumi, in December 2020, had proposed to settle the case by paying settlement charges.

Minebea Mitsumi Inc has settled with Sebi a case of alleged delay in making a public offer in respect of the acquisition of shares in Jay Ushin Ltd, on payment of a little over Rs 17 lakh towards settlement charges. This comes after Minebea Mitsumi approached the Securities and Exchange Board of India (Sebi) to settle the case. Consequently, Sebi, through a settlement order passed on April 19, said “the proceedings that may have been initiated for the defaults … be settled qua the applicant”.

Besides, the regulator said it will not initiate enforcement action against the applicant for the said defaults. The case pertains to alleged delay in making a public offer in respect of the acquisition of shares in Jay Ushin (target company) resulting in the alleged violation of Sebi’s SAST (Substantial Acquisition of Shares and Takeovers) Regulations.

According to the Sebi order, Minebea Mitsumi (applicant), which is a company incorporated in Japan, in a meeting of its board of directors held on November 7, 2018 resolved to make a tender offer, under the relevant laws of Japan, to acquire all of the issued shares of the common stock of U-Shin, which holds 26 per cent stake in Jay Ushin. Subsequently, U-Shin undertook a share consolidation exercise, making the applicant the sole shareholder in U- Shin.

Prior to the transactions, Minebea Mitsumi did not hold any shares/voting rights/control in Jay Ushin. But pursuant to the transactions, the applicant became entitled to indirectly exercise voting rights and control over the target company and thus triggered the requirement to make an open offer under SAST Regulations, the order noted. The open offer was made only on May 20, 2020 to acquire 10,04,770 shares constituting 26 per cent of the voting share capital of the target company at a price of Rs 589.94 per share.

The per share amount included the interest at the rate of 10 per cent from November 7, 2018 (date of intention to acquire control over the target firm) till May 28, 2020 (date of publication of detailed public statement to the shareholders of the target company), it added. Pursuant to the application, Minebea Mitsumi, in December 2020, had proposed to settle the case by paying settlement charges.

Thereafter, Sebi’s High Powered Advisory Committee, in January 2021, considered the proposed settlement terms made by the applicant and recommended the case for settlement upon payment of Rs 17.06 lakh. Following this, the company remitted the amount in February 2021 and accordingly, Sebi has disposed of the proceedings that may be initiated for the said defaults.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1A Poetic Moment: Hindi poetry witnessing a huge rise in popularity
2How to use Ethereum founder’s $1 trillion cryptocurrency donation in a wary India
3Gold sales on Akshaya Tritiya slammed once again by Coronavirus