High Court Revokes Injunction against Kansai Super Market-H2O Merger

Economy

Osaka, Dec. 7 (Jiji Press)--Osaka High Court on Tuesday revoked a lower court’s temporary injunction against Kansai Super Market Ltd.'s <9919> management integration with H2O Retailing Corp. <8242>.

The management integration between the retailers active in western Japan would be carried out on Dec. 15 as currently scheduled, as Yokohama, Kanagawa Prefecture-based discount supermarket chain OK Corp.'s another legal step it took immediately to block the merger is highly likely to be dismissed by the court, people familiar with the matter said.

Shareholders of Kansai Super Market, based in Itami, Hyogo Prefecture, narrowly approved the integration deal with Osaka-based H2O Retailing at their extraordinary meeting on Oct. 29.

But aiming to make Kansai Super Market a wholly owned subsidiary, OK asked Kobe District Court to issue a preliminary injunction against the integration, complaining that Kansai Super Market changed a corporate shareholder’s vote from blank to affirmative after voting was closed. The court issued the injunction on Nov. 22.

The high court, however, canceled the lower court’s order, saying the change made at the shareholder’s request should be accepted because the shareholder was given few opportunities to learn how to exercise voting rights in detail.

[Copyright The Jiji Press, Ltd.]

Jiji Press