Japan drugstore Tsuruha wins proxy battle with activist investor Oasis
10/08/2023 05:01
TOKYO, Aug 10 (Reuters) - Tsuruha Holdings 3391.T on
Thursday won a proxy fight with an activist investor seeking to
reshuffle the board of directors, as the Japanese drugstore
chain received a majority of shareholder support for their
candidates.
Shareholders at their annual general meeting approved all 10
candidates nominated by the company and rejected all five
outside director nominees backed by Hong Kong-based Oasis
Management, Tsuruha said in a statement.
The proxy battle was about who should be on the board to
lead a successful M&A (mergers and acquisitions) strategy when
investors widely expect more consolidation among Japan's
fragmented drugstore industry.
Oasis argued that the current board dominated by founding
family members could impede the company from fairly evaluating
consolidation opportunities, while Tsuruha said the board
already has industry insiders with knowledge and networks which
it needs to pursue the best M&A strategy.
Retail giant Aeon 8267.T , Tsuruha's largest shareholder
with a 13% stake, said before the meeting it would support
Tsuruha.
Placing the drugstore business as one of key growth drivers,
Aeon also owns 51% of Welcia Holdings 3141.T and 10% of Kusuri
No Aoki Holdings 3549.T .
(Reporting by Makiko Yamazaki; Editing by Simon Cameron-Moore)
((Makiko.Yamazaki@thomsonreuters.com; +81-3-4563-2805;))