TCI agrees not to buy more shares in J-Power

Tag : Stand By Power

"It is disconcerting that legitimate investors who want to improvecorporate governance of privatized and listed companies can be sohastily characterized as threats to public order," the TCIdirector, John Ho, said in a statement.
The Japanese government has countered that it remains open toforeign investment, saying that J-Power was a special case andneeded to be protected from foreign investors out of concern forpossible disruptions to the nation's electricity supply.
The case for limiting TCI's investment also stems from J-Power'splans to build a nuclear power plant in Japan.
There have in fact been 760 cases in the past three years whereforeign investors had to seek approval for investment, and all wereapproved in 30 days, Japan's Ministry of Economy, Trade andIndustry said in May when it issued the order.
TCI, based in London, was brushed aside at J-Power's shareholdermeeting last month, failing to get enough votes to push through itsproposals to limit cross-shareholdings, raise the dividend payout,appoint outside directors and buy back shares.
Shares of J-Power, which was fully privatized in 2004 after thegovernment and regional electricity power generators sold theirstakes, closed Monday down 3.9 percent at ¥3,950 yen, or $37,falling on an earlier media report of TCI's compliance.