TCI Sells J-Power Stake

Oct 31 2008 | 11:02am ET

Activist hedge fund The Children’s Investment Fund is finally throwing in the towel for good in its battle with Japan’s largest electric utility.

Electric Power Development Co., better known as J-Power, said it had agreed to buy back TCI’s 9.9% stake at a 32% premium to the stock’s Friday closing price. Still, the sale—requested by TCI, according to J-Power—represents a ¥12.5 billion (US$127.3 million) loss for the US$10 billion London activist.

The move comes after TCI lost its long-running battle to double its stake in J-Power, after the Japanese government rejected its bid on national security grounds this summer. At the time, while saying it would not sue to overturn the government’s decision, TCI vowed to “continue in its quest to improve corporate governance at J-Power.”

Despite the bruising battle, J-Power had kind words for TCI as it walked out the door.

“TCI provided us opportunities to learn about company management,” Yoshihiko Nakagaki, J-Power president, said. “They have been very important shareholders, but our views on corporate management were very different.”

RELATED STORIES

TCI Won’t Sue For Bigger J-Power Stake
J-Power Acknowledges Beating TCI ‘Won’t Be Easy’
Japan Rejects TCI Bid For J-Power


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...