TOKYO — Japan’s Tokyo Stock Exchange will impose stricter rules regarding management buyouts (MBOs) as early as this spring to prevent large shareholders from taking companies private at inappropriately low prices, Nikkei has learned.
The TSE’s code of conduct currently requires companies to make timely and sufficient disclosures regarding MBOs, including the publication of a valuation report. But there are concerns that these buyouts are often priced too low, hurting the interests of minority shareholders.
