Nihon Global Growth Partners’ Proposal Receives Unprecedented Support at Toyo Suisan’s 2024 General Shareholders’ Meeting
30 Junio 2024 - 8:54AM
Business Wire
Proposal for Disclosure of Company’s Cost of
Capital Receives Almost 50% Support
Results Clearly Demonstrate Shareholder
Concerns Regarding Toyo Suisan’s Capital Allocation
Toyo Suisan Previously Announced First Share
Buyback in 17 Years in Direct Response to NHGGP Share Buyback
Proposal
Nihon Global Growth Partners Management Inc. (“NHGGP”) today
highlighted encouraging results from its engagement surrounding the
2024 General Shareholders’ Meeting (the “Meeting”) of Toyo Suisan
Kaisha Ltd. (2875.T) (“Toyo Suisan” or the “Company”), which was
held on June 27th.
Specifically, NHGGP’s shareholder proposal requiring the Company
to disclose its cost of capital received 49% support at the
Meeting, which NHGGP believes to be the
highest ever approval percentage for a shareholder cost of capital
disclosure proposal in Japan. Given that over 10% of the
Company’s shares are owned by cross-shareholders and related
parties, NHGGP believes that it received support from a majority of
the “unaffiliated” shareholders. While this approval rate did not
meet the challenging two-thirds approval threshold for a proposal
of this nature, the nearly 50% support clearly demonstrates the
strong desire among shareholders for management to not only
communicate its understanding of the Company’s cost of capital, but
to also provide a justification for the continued investment in
low-return legacy businesses and the stockpiling of JPY270 billion
of cash and securities.
Additionally, on June 4, 2024, Toyo Suisan announced a JPY25
billion share buyback, its first share buyback in 17 years.
Previously, NHGGP made a shareholder proposal for a JPY20 billion
share buyback at the Meeting. NHGGP believes that the Company’s
preemptive share buyback was the direct result not only of this
shareholder proposal but also strong and widespread shareholder
support for such an action.
NHGGP’s proposal to introduce management stock-based
compensation received 22% support at the Meeting, also one of the
highest levels of support for such a proposal.
NHGGP is grateful to all shareholders and other market
participants, including the leading international proxy advisors,
Institutional Shareholder Services, Inc. and Glass, Lewis &
Co., who supported its proposal for cost of capital disclosure.
NHGGP looks forward to its continued engagement with the Company
and other market participants in the future.
About NHGGP
Nihon Global Growth Partners Management Inc. (“NHGGP”) is a
long-term investor in Japanese listed companies that are rapidly
growing in markets outside of Japan. Prior to founding NHGGP in
2018, its principals were involved in managing several private
equity funds in Japan beginning in 2004. NHGGP manages private
investment vehicles, including the NHGGP Japan Opportunities Fund
L.P., which was launched in 2021.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240630766759/en/
General inquiries:
info@nhggp.com
Japan media inquiries: Ashton
Consulting Limited P+81 (0)3-5425-7220 nhggp@ashton.jp
International media inquiries:
Longacre Square Partners nhggp@longacresquare.com