Ex-Don Quijote Boss Admits to Illegal Share Trade Advice
Tokyo, March 9 (Jiji Press)--The former president of Don Quijote Holdings Co. admitted in court on Tuesday to recommending an acquaintance to buy shares in the discount store group before a tender offer for the company was announced.
Koji Ohara, 57, admitted to the allegations at the first hearing of his trial at Tokyo District Court. He was charged with violating the Financial Instruments and Exchange Act.
In an opening statement, prosecutors said Ohara, then president of Don Quijote Holdings, now called Pan Pacific International Holdings Corp. <7532>, recommended the acquaintance, the president of a pachinko pinball parlor company, to buy Don Quijote Holdings shares by using undisclosed information.
The pachinko company president bought a total of 76,500 Don Quijote Holdings shares for some 430 million yen before the tender offer was announced on Oct. 11, 2018, and gained about 69 million yen in profit by selling the shares after the announcement, the prosecutors said.
According to the indictment and other sources, Ohara recommended the pachinko company president to buy Don Quijote Holdings shares for financial benefit on multiple occasions in September 2018, before FamilyMart Uny Holdings Co., now FamilyMart Co., announced its tender offer for Don Quijote Holdings.
[Copyright The Jiji Press, Ltd.]