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Idemitsu's founding family to oppose CEO re-election - Nikkei
June 3, 2017 / 2:45 AM / 6 months ago

Idemitsu's founding family to oppose CEO re-election - Nikkei

TOKYO (Reuters) - The founding family of Idemitsu Kosan Co (5019.T) is set to vote against re-electing the Japanese oil refiner’s top executives who are pushing for a full merger with smaller rival Showa Shell Sekiyu (5002.T), the Nikkei business daily said on Saturday.

A signboard of Idemitsu Kosan Co is seen behind a traffic light at its gas station in Tokyo, Japan, August 15, 2016. REUTERS/Kim Kyung-Hoon

That would be a second straight year the family and related parties, which together hold 33.92 percent of Idemitsu shares, would oppose the re-election of CEO Takashi Tsukioka and other board members at Idemitsu’s annual general shareholders’ meeting scheduled in late June, the report said without citing sources.

The family’s opposition to re-election of the company board came close to removing Tsukioka, along with other board members, in a vote at last year’s shareholders’ meeting.

Idemitsu Kosan completed the purchase of just under a third of Showa Shell last December. The goal of combining the two companies has been delayed indefinitely due to Idemitsu’s founding family’s opposition to the merger.

The family’s new lawyer, Yohei Tsuruma, is expected to announce their decision on Monday ahead of the shareholders’ meeting scheduled for June 29, the report added.

Idemitsu’s management has been looking at various options to complete the merger but none of them have swayed the founding family.

Reporting by Osamu Tsukimori; Editing by Jacqueline Wong

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