Activist Oasis says it owns over 3% of Japanese cosmetics firm Kao (updated)

Kao

08/04/2024 02:55

(Adds details from press conference and background on campaign
launch last week)
       TOKYO, April 8 (Reuters) - Hong Kong-based activist
investor Oasis Management said on Monday it owns more than 3% of
Japanese cosmetics and skincare firm Kao  4452.T , in its latest
announcement after last week revealing its efforts to promote
change at the company.
    Oasis, which has been pressuring Kao to streamline its brand
portfolio, has been investing in the company for over four years
and actively engaging with the company for the last nine months,
the fund's founder and chief investment officer, Seth Fischer,
told a press conference in Tokyo.
    Oasis launched a campaign against Kao on Thursday last week,
calling on Kao to prioritise its international marketing and
streamline its "bloated brand portfolio" as it has lost market
share to competitors in recent years.
    Fischer said that Kao has no board members with
international marketing experience and called for both the
appointment of a chief marketing officer and for more diversity
on the board, adding that the cosmetics maker had only one
female board member, down from two a year ago.
    Oasis' stake gives it full shareholder rights and Fischer
said Oasis was considering all available options, including
calling for an annual general meeting and submitting shareholder
proposals.
    Fischer said that he had tried multiple times to meet with
Kao President Yoshihiro Hasebe but was not offered a meeting
until May. He said Oasis went public with their concerns as they
were unsatisfied by Kao's response to their private engagement.
    "Their existing brands have such growth potential," Fischer
said. "They have the right products, they simply need to focus
on marketing."

 (Reporting by Anton Bridge and Makiko Yamazaki; Editing by Tom
Hogue and Christopher Cushing)
 ((Makiko.Yamazaki@thomsonreuters.com; +81-3-4563-2805;))