A group of hedge funds, including Citadel, Athos Capital, and Maven Investment Partners, have challenged the price of SBI Holdings’ 2023 buyout of Shinsei Bank, arguing that the JPY2,800-per-share offer significantly undervalued the lender, according to a report by Bloomberg.
According to filings reviewed by Bloomberg, investors – which also include Norges Bank – lodged private petitions with the Tokyo District Court, claiming the deal failed to reflect Shinsei’s fair value. The case, still pending, comes as SBI Shinsei Bank prepares for a JPY1tn ($6.5bn) relisting on the Tokyo Stock Exchange next month.
If the court rules in favour of the petitioners, Shinsei could face payouts worth millions, with past valuations suggesting a fair price between JPY3,750 and JPY7,500 per share.
The dispute underscores the growing use of “appraisal rights” by hedge funds in Japan — a legal mechanism allowing minority investors to contest undervalued take-private offers. Similar challenges have already gained traction, with courts siding with activist funds RMB Capital and Oasis Management in last year’s FamilyMart case.
