Asset Value Investors (AVI) Submits Shareholder Proposals to SK Kaken for the Fourth Year in a Row

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 and low valuation.

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:

(1) The cancellation of 90% of the 2,192,425 shares held in treasury.

(2) Increase the dividend from Y135 per share to Y290, representing a 50% payout ratio.

Two directors of an AVI managed fund plan to attend the AGM to directly challenge the Fujii family’s fiduciary failure and neglect of minority shareholders.

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, symptoms often encountered at companies with controlling shareholders. Over 40% of SK Kaken’s shares are owned by members of the founding Fujii family.”

“We submitted shareholder proposals for the last three years, and despite receiving strong support, SK Kaken has failed to reduce its excess treasury shares nor address its overcapitalised balance sheet.”

AVI is calling on its fellow shareholders to continue to express their disapproval of poor management policies and continued weak performance under the control of the Fujii family.

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 30 years. AVI manages AVI Global Trust (Total Gross Assets: approximately JPY250bn (£1.3bn)), AVI Japan Opportunities Trust (Total Gross Assets: approximately JPY40bn (£0.21bn)), etc., as of 31 March 2024. AGT and AJOT are public companies whose shares are listed and traded on the main market of the London Stock Exchange.

Contacts

Daniel Lee – daniel.lee@assetvalueinvestors.com
Asset Value Investors Limited