Chiikishinbunsha Faces Potential Violation Over Acquisition Proposal

TOKYO, Jul 15 (Pulse News Wire) – Chiikishinbunsha CO.,LTD. (2164.F) recognized the public notice made by MTM Capital Co., Ltd.

Regarding their planned acquisition proposal scheduled for mid-to-late August 2026. However, the company believes MTM's actions constitute significant violations of previously announced anti-takeover measures and potentially violate securities laws. Additionally, MTM’s conduct is seen as damaging to the company’s reputation. Chiikishinbunsha had already initiated countermeasures against MTM based on its established defense strategy due to MTM exceeding the agreed threshold without submitting the necessary declaration forms. Despite this, MTM proceeded with the proposed acquisition, raising concerns over compliance with the Financial Instruments and Exchange Act. Furthermore, MTM’s recent report on stock holdings failed to disclose concrete details of the proposed acquisition, which could be considered non-compliant with regulatory requirements.

Moreover, Chiikishinbunsha asserts that MTM’s actions might require a tender offer under the law, necessitating adequate funding documentation. Any attempt to proceed without such proof could lead to accusations of spreading false rumors, according to legal interpretations. Therefore, Chiikishinbunsha urges caution regarding MTM’s intentions and compliance. In addition, MTM’s claim that Chiikishinbunsha’s expenses related to defending against hostile takeovers amount to illegal profit distribution is disputed. Legal precedents support the view that reasonable expenditures to protect shareholder interests do not breach fiduciary duties. Consequently, Chiikishinbunsha considers MTM’s allegations defamatory and demands immediate retraction to prevent further damage to the company’s credibility.