Our Shareholder Proposals for Asanuma (2020)
Strategic Capital and the Japan-Up fund are shareholders of ASANUMA CORP. (hereinafter referred to as “Asanuma” or “Company”). We have exercised on our shareholders’ right to make the following proposals at the upcoming AGM in order to improve shareholder value
- Sell cross-shareholdings to improve capital efficiency
……… Proposal.1(#4 on the convocation notice)
- Increase dividends to achieve 100% payout ratio
……… Proposal.2(#5 on the convocation notice)
The challenges and our solutions are as follows.
1. Excessive cash and cross-shareholdings
One of the reasons for Asanuma ‘s low valuation is excessive cash and cross shareholdings it holds. In order to improve capital efficiency and eliminate the unnecessary impact by the stock’s price movements on the Company’s financial results , we propose to sell the cross shareholdings within 3 years We hope that the proceeds from the sale will be used to enhance shareholder value.
2. Capital Accumulation and net cash equal to 74% of market cap.
Due to continuous low level of shareholder returns in the past, Asanuma’s equity capital and net cash have accumulated and account for 74% of its market capitalization as of June 1st, 2020. We propose a payout ratio of 100% to prevent further accumulation of cash and equity capital.
Note that we made the same shareholder proposals as above last year and both gained more than 28% of favor votes.