US investor presses Japan Aviation and NEC to cancel buyback, reconsider buyout offers

TOKYO, Feb 22 (Reuters): Chicago-based investor Curi RMB Capital said on Thursday that NEC, opens new tab and its listed unit Japan Aviation Electronics (JAE), opens new tab should cancel their buyback deal and reconsider alternative buyout offers they have received.
The call came after Reuters reported NEC had received multiple buyout offers from global private equity funds for JAE before agreeing to tender much of its 51 per cent stake to the unit at a discount via a tender offer.
Curi RMB, with more than $11 billion under management, owns shares in both NEC and JAE, which makes connectors used in smartphones including Apple's, opens new tab iPhones.
Both NEC and JAE declined to comment on Curi RMB's statement.
The buyback tender offer does not represent the best interest of shareholders of both companies, Curi RMB said in a statement, opens new tab, adding that it sees "potential conflict of interests" between JAE and NEC management and minority shareholders.
NEC and JAE should disclose more information regarding the multiple buyout offers they had received and explain why they did not accept these buyout offers, Curi RMB said.
If NEC and JAE do not do so, Curi RMB Capital said it plans to seek the companies' board minutes under court permission to evaluate their decision-making process and "pursue appropriate recourse against the board on behalf of shareholders".
At least three global funds indicated to both JAE and its parent NEC in the past they were willing to pay substantial premiums to buy out the maker of electronics components, sources told Reuters.