LONDON--(BUSINESS WIRE)--Asset Value Investors ("AVI") announces today that it has submitted shareholder proposals to SK Kaken Co., Ltd. (TSE 4628) ("SK Kaken" or the "Company") addressing two issues contributing to the Company's poor share price performance, low valuation, and potential delisting from the Tokyo Stock Exchange ("TSE").
Due to a lack of progress and the Fujii family’s refusal to engage in strategic discussion, AVI has put forward two proposals to SK Kaken’s AGM:
- The cancellation of 90% of the 438,400 shares held in treasury.
- Increase the dividend from Y400 per share to Y800, representing a 30% payout ratio.
A presentation outlining AVI's rationale for changes and full details of the shareholder proposals is available on AVI's dedicated website www.paintingabetterSKKaken.com.
Joe Bauernfreund, CEO of AVI, comments: "SK Kaken's issues reflect a lack of urgency and weak management discipline, a symptom often encountered at a company with a controlling shareholder. Over 40% of SK Kaken's shares are owned by, and key senior executive positions held by, members of the founding Fujii family.”
"We submitted shareholder proposals last year and the year before, and despite receiving strong support from non-Fujii family shareholders, SK Kaken has failed to reduce its excess treasury shares and raise its low dividend pay-out ratio.”
AVI is calling on its fellow shareholders to continue to express their disapproval of poor management policies, which are negatively influenced by a controlling shareholder who has repeatedly neglected minority shareholder interests.
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About Asset Value Investors (AVI)
AVI is an investment management company established in London, United Kingdom, in 1985, and AVI has invested in Japanese equities for more than 20 years. AVI manages AVI Global Trust (Total Gross Assets: approximately JPY190bn (£1.2bn)), AVI Japan Opportunities Trust (Total Gross Assets: approximately JPY31bn (£0.19bn)), etc., as of 31 March 2023. AGT and AJOT are public companies whose shares are listed and traded on the main market of the London Stock Exchange.