By Anton Bridge
TOKYO (Reuters) – Singapore-based 3D Investment Partners published a plan on Tuesday to reform Japanese drugmaker Toho Holdings, saying governance deficiencies such as large cross-holdings and absence of independent board members impaired corporate value.
Shareholder activism in Japan has boomed as investors seek to profit from long-awaited corporate governance changes spreading among firms that stand to boost shareholder returns and capital allocation.
In the report, only made public on Tuesday, although it was sent to the company’s board in August 2023, 3D called for cross-shareholdings to be unwound, labour costs cut and sought investment in growth initiatives.
The firm said it published the report to share its proposals with other shareholders, adding that it did not believe a special panel to enhance governance set up by Toho was likely to materially improve the board’s oversight.
3D, which holds about 18% of Toho’s shares according to LSEG data, is driving several public campaigns, such as one at Sapporo, calling for the brewer to divest some of its substantial real estate holdings.
It has also put forward a candidate for outside director, backed by proxy adviser firms ISS and Glass Lewis.
(Reporting by Rocky Swift and Anton Bridge; Editing by Muralikumar Anantharaman and Clarence Fernandez)
