Key facts
- A former Mitsubishi Corp. employee faces a recommended 1.87 million yen ($11,800) fine for insider trading.
- The employee allegedly used non-public information about a take-private deal for Nagatanien Holdings.
- Purchases were made between May 28-29, 2024, before Nagatanien Holdings' MBO announcement on June 3, 2024.
- The employee profited approximately 1.8 million yen ($11,000) from the trades.
- Mitsubishi Corp. has dismissed the employee and stated it will strengthen internal controls.
A former employee of Mitsubishi Corp. is facing a recommended administrative fine of 1.87 million yen ($11,800) for insider trading, according to Japan's Securities and Exchange Surveillance Commission (SESC). The SESC recommended on Friday that the Financial Services Agency impose the penalty on the individual, who was in his 30s at the time of the alleged offense.
The former employee reportedly obtained non-public information between May 28 and 29, 2024, regarding a tender offer for Nagatanien Holdings, a Japanese food company. This information was learned in the course of his duties as an employee of Mitsubishi Corp., which was involved in the deal through a subsidiary.
He allegedly used this information to purchase 2,000 Nagatanien Holdings shares for approximately 4.39 million yen. Following the announcement of the management buyout (MBO) involving Marunouchi Capital, a subsidiary of Mitsubishi Corp., on June 3, 2024, the employee sold the shares for about 6.2 million yen, realizing a profit of roughly 1.8 million yen.
Mitsubishi Corp. confirmed the employee's dismissal and stated that it takes the incident seriously, apologizing to all concerned parties. The company also indicated it would strengthen its internal controls and compliance framework to prevent future occurrences.