Sapporo might get half-drunk on efficiency

Sapporo Breweries

18/07/2024 05:06

(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
    By Anshuman Daga
       SINGAPORE, July 18 (Reuters Breakingviews) - After the
$3 bln beer maker agreed to rejig its property holdings,
activist 3D has detailed exactly how the company should go about
it. Japan Inc is warming up to the idea of realising gains on
real estate. But there's plenty of room for missteps, even in a
seller's market.
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    CONTEXT NEWS 
    Japan-focused 3D Investment Partners on July 9 detailed
various methods beer maker Sapporo could use to divest its real
estate assets to boost its market value by at least 64%.
    The company should consider a tax-free spin-off of a real
estate holding company as well as complete sales of individual
properties, 3D said in a 38-page presentation.
    The activist fund, which has urged the company to improve
growth at its alcohol beverages business, became Sapporo's
biggest shareholder in January with a 16% stake. 3D has been an
investor since at least 2022.
    Sapporo said in February 2024 that it would diversify "its
way of holding real estate" including introduce capital from
external strategic partners. 3D said it understands Sapporo
plans to outline a new structure for its real estate assets
within this fiscal year.

 (Editing by Una Galani and Aditya Srivastav)
 ((For previous columns by the author, Reuters customers can
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anshuman.daga@thomsonreuters.com))