Activist investor Oasis launches campaign against Japan drug store chain Ain (updated)

Kao

28/06/2024 03:13

(Adds Ain comment on shareholder proposals, details on
proposals and on directors being found guilty.)
       TOKYO, June 28 (Reuters) - Activist investor Oasis
Management has called for governance overhaul at scandal-hit Ain
Holdings  9627.T , Japan's largest drug store chain, in its
latest activist campaign targeting a Japanese company.
    Oasis said there was no independent oversight of management
at Ain and has proposed the appointment of four new outside
directors, a new compensation plan for outside directors, and
the dismissal of two incumbent directors.
    Ain had disclosed earlier it received Oasis' shareholder
proposals in early June and responded on June 26 saying the
company believed their board had sufficient independent
oversight and that Oasis' proposed outside director compensation
plan would leave it unable to respond flexibly to the external
market environment.
    An Ain spokesperson said on Friday the company was in the
process of studying Oasis' campaign announcement.
    In 2023, a director from Ain and another from an Ain
subsidiary were prosecuted for mishandling documents related to
a public contract bid. Both were found guilty in April 2024.
    Ain shares fell 3.5% on Friday morning, compared with a 1%
gain on the benchmark Nikkei index  .N225 .
    Hong Kong-based Oasis launched in April a campaign aimed at
cosmetics and skincare firm Kao  4452.T , demanding it redefine
its brand portfolio and improve marketing.

 (Reporting by Anton Bridge; Editing by Christopher Cushing and
Muralikumar Anantharaman)
 ((Anton.Bridge@thomsonreuters.com;))