RCS - AVI Japan Opport.Tst - AVI urges the dismissal of two directors at Wacom

AVI Japan Opportunity TrustAnnouncement

Thu 09:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260514:nRSN3410Ea&default-theme=true

RNS Number : 3410E  AVI Japan Opportunity Trust PLC  14 May 2026

 

AVI urges the dismissal of two directors at Wacom

London, 14(th) May, 2026  - Asset Value Investors Limited ("AVI") has
submitted shareholder proposals on one of AVI Japan Opportunity Trust's
("AJOT") portfolio companies, Wacom Corporation (TSE: 6727, "Wacom") calling
for board changes ahead of Wacom's upcoming Annual General Meeting in June.
AVI, Wacom's largest shareholder on behalf of all the portfolios it manages,
is seeking the dismissal of two directors and the appointment of one external
director.

Alongside these proposals, AVI has disclosed additional material on its Wacom
campaign, including a detailed presentation on an updated dedicated website
(www.DrawWacomsFuture.com (http://www.DrawWacomsFuture.com) ).

Since initiating its investment in Wacom in August 2021, AVI has sought
various forms of engagement aimed at enhancing the company's long-term
corporate value as Wacom's largest shareholder. However, the Branded Business,
one of Wacom's principal business segments, fell into loss from FY2023/3
onwards, and business growth has stalled amid the implementation of
large-scale restructuring measures. Furthermore, AVI has serious concerns
regarding Wacom's governance framework in light of the recently announced
inappropriate acquisition of a company represented by one of Wacom's own
outside directors, despite the absence of tangible business synergies with
Wacom, as well as the improper use of corporate resources, including the
provision of preferential treatment to the children of the company
representative director, Mr Ide.

In light of these circumstances, AVI, as the company's largest shareholder and
a long-term investor on behalf of all the portfolios it manages, publicly
launched a campaign last year to support sustainable improvements in corporate
value. This year, AVI has decided to publish additional materials and submit
shareholder proposals at the upcoming annual general meeting, as follows:

• Appointment of one outside director

• Dismissal of two directors (the Representative Director and one outside
director)

Kaz Sakai, Head of Japan Research at AVI, commented as follows:

"Wacom has demonstrated serious deficiencies in governance oversight. These
include the acquisition by Wacom of a loss-making company represented by Mr
Nakajima, one of its own external directors, for more than ten million
dollars, the subsequent transfer of Mr Nakajima into an internal director
role, and conduct by Mr Ide, Wacom's Representative Director and CEO, that can
only reasonably be viewed as a conflation of personal and corporate interests,
together with a board that has tolerated such behaviour."

"Wacom must restore the proper functioning of its governance framework without
delay. In addition to proposing the dismissal of Mr Ide and Mr Nakajima, whom
AVI has concluded are central to these governance failures, AVI has also
nominated a candidate for outside director capable of strengthening governance
and management. We are confident that, through the board structure recommended
by AVI and the implementation of operational improvement measures, Wacom can
further reinforce its position as the global market leader in the graphic
tablet business."

 

-ENDS-

About Asset Value Investors (AVI):

AVI is an investment management company established in London, United Kingdom,
in 1985. AVI has invested in Japanese equities for more than 40 years. AVI
manages AVI Global Trust (AGT) and AVI Japan Opportunity Trust (AJOT) and
other funds, collectively investing Y180bn into the Japanese market. AGT and
AJOT are public companies whose shares are listed and traded on the main
market of the London Stock Exchange.

 

AVI is a signatory to Japan's Stewardship Code and is committed to
constructive engagement with management teams and boards of its portfolio
companies, with the aim of contributing to sustainable growth and enhanced
enterprise value.

 

AVI's holding in Wacom on behalf of all its funds is 13.8% making AVI the
largest shareholder. (as of 30 April 2026) Wacom is a 5.5% holding in AJOT.

 

Media Contacts:

KL Communications      AVI@kl-communications.com
(mailto:AVI@kl-communications.com)

+44 (0)20 3882 6644

Ashton Consulting         avijapanpr@ashton.jp
(mailto:avijapanpr@ashton.jp)

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NRAEAXSLFDPKEEA



            Copyright 2019 Regulatory News Service, all rights reserved