Chip materials maker JSR to nominate ValueAct exec to board (updated)

JSR

25/01/2021 09:41

(Adds background, JSR statement, analyst comment)
    TOKYO, Jan 25 (Reuters) - Japanese chip and display
materials maker JSR Corp  4185.T  said on Monday it will
nominate a partner of activist investor ValueAct Capital to be
an external board director, a rare move in the country where
activists are still viewed with suspicion by many.
    The nominee, ValueAct's Robert Hale, marked a milestone in
Japan's corporate governance two years ago by joining the board
of medical equipment and camera maker Olympus Corp  7733.T .
    ValueAct Capital became a major shareholder in JSR with more
than a 7% stake early last year. JSR, established in 1957 as a
government-backed synthetic rubber maker, now supplies materials
to global chip and display makers.  urn:newsml:reuters.com:*:nL4N2BN34V
    JSR will propose Hale to be named a director at its annual
shareholders meeting in June. Shareholders will need to approve
the nomination.
    "Mr. Hale will bring valuable outside perspective,
experience and international understanding that will help the
company in making critical strategic decisions," JSR said in a
statement.
     The nomination "could push up JSR's stock price if the
market takes it as a sign of the increased likelihood of a sale
of the rubber business," Jefferies analyst Yoshihiro Azuma wrote
in a note to clients.
    Unlike other investment firms that push for change publicly
and often ask for board seats at target companies, ValueAct
prefers to work with management behind the scenes.
    Reuters reported last year it had built a stake of over $1.1
billion in Japanese gaming company Nintendo Co Ltd  7974.T .
 urn:newsml:reuters.com:*:nL1N2C909Q

 (Reporting by Makiko Yamazaki; Editing by Edmund Blair and
Louise Heavens)
 ((Makiko.Yamazaki@thomsonreuters.com; +81-3-4563-2805;))