AVI Calls For Governance Reforms At Wacom, Tables Shareholder Proposals 

KUALA LUMPUR, May 9 (Bernama) -- Asset Value Investors Ltd (AVI) has launched a campaign urging Wacom Corporation (Wacom) to improve its responsiveness to capital market expectations and announced the submission of shareholder proposals ahead of Wacom’s annual general meeting (AGM) scheduled for June.

AVI, which became Wacom’s largest shareholder after investing in August 2021, said it has consistently engaged with the company through letters and presentations in a bid to enhance sustainable corporate value.

The investment management firm expressed concern over the prolonged underperformance of Wacom’s Branded Business segment, which has accumulated losses exceeding 10 billion Japanese yen since the fourth quarter of the fiscal year ended March 31, 2022. (100 Japanese yen = RM2.92)

According to AVI in a statement, Wacom has also fallen significantly short of its mid-term business plan and has underperformed Japan’s TOPIX index during the same period.

AVI Japan Head of Research, Kazunari Sakai said to improve alignment with investor expectations and shareholder interests, Wacom should move beyond a passive monitoring role and adopt a more proactive governance structure.

He proposed appointing directors with capital markets experience, forming a supervisory committee, and amending the company’s Articles of Incorporation to align with the Ministry of Economy, Trade and Industry’s (METI) Guidelines for Corporate Takeovers.

bootstrap slideshow

As part of its campaign, AVI is calling for the establishment of a Transformation Plan Supervisory Committee, the appointment of an outside director with capital market expertise, and amendments to the Articles of Incorporation regarding acquisition proposals to support the sustainable enhancement of corporate value and strengthen Wacom’s competitiveness.

Despite challenges in the Branded Business, AVI believes Wacom retains strong global leadership potential through shorter product development cycles for entry-level products and bolstered e-commerce strategies.

Founded in London in 1985, AVI is a long-term investor in Japanese equities and has nearly four decades of experience investing in the nation’s market.

-- BERNAMA