Newsfrom Japan
Tokyo, April 23 (Jiji Press)–Asian investment fund MBK Partners said Thursday it has been advised by Japan’s government to cancel its planned tender offer for Makino Milling Machine Co. under the country’s foreign exchange law.
MBK Partners said it was informed by the government that the advisory reflects its security concerns as Makino’s high-performance machine tools can be converted for military use.
This marked the first such advisory issued by the Japanese government since the foreign exchange law was amended in 2017 to prevent outflows abroad of advanced Japanese technologies that can be diverted for military use.
MBK Partners needs to decide by May 1 whether to accept the recommendation, which it received Wednesday. If the fund rejects the advisory, the government is expected to order it to call off the planned tender offer.
The investment fund said it has taken risk-cutting measures sufficient to allay the Japanese government’s security concerns and that the advisory therefore came as a big surprise.
[Copyright The Jiji Press, Ltd.]