Asian Fund MBK Cancels Makino Milling Machine Bid

Tokyo, April 30 (Jiji Press)--Makino Milling Machine Co. said Thursday that Asian investment fund MBK Partners has withdrawn its plan to launch a tender offer for the major Japanese machine tool maker.

MBK Partners accepted the Japanese government’s advisory for the fund to cancel the planned bid to acquire the Japanese company.

Makino Milling Machine also said that Japanese investment fund Nippon Sangyo Suishin Kiko Ltd. has proposed acquiring the company and that it has started to consider the offer.

MBK Partners received on April 22 the government advisory issued under Japan’s foreign exchange law. In the advisory, the government said that the possible acquisition of Makino Milling Machine by a foreign entity would raise security concern because the company’s high-performance machine tools and related information may be diverted to military use.

The fund informed the government Thursday that it has decided to comply with the advisory while saying in a statement that the development is very regrettable.

[Copyright The Jiji Press, Ltd.]