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: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Star Mountain Capital: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of