CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Shinsei Bank (8303) cancels opposition to SBI’s (8473) bid

By Andreas Ismar

06:17, 25 November 2021

Shinsei Bank logo in one of its branches in Japan
Shinsei Bank logo in one of its branches in Japan - Photo: Shutterstock

Japan’s Shinsei Bank has had a change of heart, toning down its strong opposition against tender offer bid from SBI Holdings, paving way for the latter to become the controlling shareholder of the lender.

The online financial group SBI in September made an unsolicited offer to buy a 28% stake in Shinsei to raise its ownership to 48% in a $1.1bn deal. In October, Shinsei rejected the offer, saying an offer of JPY2,000 for each share was too low and preparing moves to block the deal.

In a statement on late Wednesday, Shinsei said it “will revise its ‘opposing’ opinion” to ‘neutral’.

“The Board of Directors of the Shinsei Bank will change its opinion on the TOB [tender offer bid] to take a neutral position because it is considered appropriate to leave the decision to each shareholder as to whether or not to tender the shares to SBIHDs [SBI Holdings].”

No longer blocking the offer

“The Board of Directors of Shinsei Bank are of the opinion that it is no longer necessary to block the Large - scale Purchase in order to protect the common interests of shareholders,” and thus cancelling the extraordinary general meeting (EGM) slated on Thursday.

The sharp change in Shinsei’s stance likely due to the Japanese government, which owns around a 20% stake in the bank, saw merit in SBI’s proposal. Kyodo news reported on Wednesday that the government was considering to vote against Shinsei’s defence.


37,816.25 Price
+0.180% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

Oil - Crude

76.17 Price
-2.160% 1D Chg, %
Long position overnight fee -0.0165%
Short position overnight fee -0.0054%
Overnight fee time 22:00 (UTC)
Spread 0.030


2,036.34 Price
-0.360% 1D Chg, %
Long position overnight fee -0.0196%
Short position overnight fee 0.0114%
Overnight fee time 22:00 (UTC)
Spread 0.30


15,893.10 Price
-0.680% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8

As the government and SBI held combined 40% stake in Shinsei, it would be difficult for the bank’s board to secure sufficient vote to block SBI’s proposal.

To vote for new board in February

Shinsei also said it will accept SBI’s candidates for independent board of directors, with current directors intending to step down once new directors are elected.

The bank plans to hold an EGM to vote for new board in early February.

Stock price of Shinsei Bank fell 0.7% to JPY1,944 in afternoon trade in Tokyo, while SBI Holdings rose 2.8% to JPY3,125.

Read more: Japan’s Shinsei Bank rejects bid from SBI Holdings

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading