Bloomberg – Japan issued a final order to Children’s Investment Fund Management (UK) LLP to drop a bid to double its stake in J-Power, rejecting a last-ditch appeal from the U.K. hedge fund. <\/p>\n
Japan’s central bank today handed a letter from the finance and trade ministries to the $10 billion fund, known as TCI, ordering it to withdraw the request to double its 9.9 percent stake in Electric Power Development Co., according to a statement released in Tokyo. <\/p>\n
The order marks the first time Japan has invoked a national security law to block overseas acquisitions of more than 10 percent in companies in certain vital industries, including arms makers and utilities. The move comes at a time foreign investors, including California Public Employees’ Retirement System, are set to ask Japanese companies to improve overall corporate governance. <\/p>\n
“TCI has never indicated clear plans how to avert an adverse impact on J-Power’s nuclear-plant project, such as a major delay or cancellation,” Keiichi Kawakami, director of the trade promotion division at the trade ministry, told reporters. <\/p>\n
TCI has until July 14 to notify the government if it intends to pursue the matter in court, Kawakami said. <\/p>\n
“There has been no engagement on our submission and there are no clear reasons to reject us,” John Ho, Hong Kong-based head of TCI’s Asian division, said by phone today before the announcement. `We will take it step by step.”<\/p>\n