Japanese oil refiner Idemitsu has been forced to abandon a bid to take full control of its 50.12 percent-owned subsidiary Toa Oil after failing to obtain enough shares to complete the planned acquisition.
Despite this, Idemitsu plans to continue co-operating with Toa Oil to enhance group operations. Toa Oil manages the 70,000 b/d Kawasaki refinery, part of Idemitsu’s 945,000 b/d refining operations, and supplies all the refinery’s output to Idemitsu.
Idemitsu said it has withdrawn its tender offer after falling short of the minimum 2.1 million Toa Oil shares, or 16.5 percent, it needed to proceed with the acquisition.
But Toa Oil’s shares have since soared above Idemitsu’s offered price of ¥2,450/share, partly because of active buying by US investment fund Cornwall Capital Management. Cornwall Capital had acquired a 25.61 percent stake in Toa Oil in January, according to a public filing.
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