Yoshiaki Murakami, Japan’s most notorious activist investor, just found his attempt to seat himself and three of his associates on Kuroda Electric’s board a little harder than expected.
According to Reuters, proxy advisor Glass Lewis has come out against Murakami’s proposal, calling the logic behind the move “unconvincing” and adding that their shareholder returns plan simply hinges on a “rigid and extreme dividend policy.”
Murakami, through C&I Holdings, has been trying to take control of Osaka-based Kuroda, saying that his and his associate’s placements on the board would aid the company “seek a shareholder return ratio of 100 percent for the next three years,” as opposed to the current regime of “low returns, poor capital policies, and a lack of merger and acquisition-based growth.”
Interestingly, ISS, another proxy advisor, is backing Murakami’s move, saying that the additions would bring “new insights on industry conditions and balance sheet management.”
ISS was the first advisor who spoke on the matter, lifting the Murakami group’s hopes for a win. With Glass Lewis now in their way however, things are a whole lot different.
Murakami, C&I Holdings, and Minami Aoyama Real Estate – their partner in this venture – currently own almost 15% of Kuroda Electric.
Photo: Yoshikazu TAKADA