Activist Oasis urges Hokuetsu shareholders to vote against CEO re-election (updated)

Daio Paper

22/05/2023 02:36

(Adds no immediate comment from Hokuetsu, shares)
       May 22 (Reuters) - Activist investor Oasis Management on
Monday urged shareholders of Hokuetsu Corp  3865.T  to vote
against the re-election of CEO Seiko Kishimoto after Japan's
No.5 paper maker refused a call to sell its stake in a larger
rival.
    Hong Kong-based Oasis, Hokuetsu's biggest shareholder with a
more than 18% stake, said in a statement that the departure of
Kishimoto, also president of the company, would enhance
Hokuetsu's corporate value over the long term.
    Oasis has been pushing Hokuetsu to divest its 24.6% stake in
No.4 paper maker Daio Paper Corp  3880.T , citing "the lack of
synergies achieved which might have justified the risks involved
in holding such a single large investment".
    Hokuetsu became the top shareholder in Daio in 2012 when it
acquired a large stake from Daio's founding family.
    A Hokuetsu spokesperson said no comment was immediately
available as the company was checking the content of Oasis'
statement.    
    Shares of Hokuetsu traded flat early on Monday. The company
will hold an annual shareholders meeting on June 29.
    Oasis scored a major success at elevator maker Fujitec Co
Ltd  6406.T  earlier this year when three outside directors were
replaced with four new ones nominated by the fund. 

 (Reporting by Urvi Dugar in Bengaluru and Makiko Yamazaki in
Tokyo; Editing by Himani Sarkar)
 ((UrviManoj.Dugar@thomsonreuters.com;))