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.”
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