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LONDON - Asset Value Investors Limited (AVI), a significant shareholder in Wacom Corporation (TSE:6727), has launched a public campaign urging the Japan-based company to implement governance changes. AVI, which manages funds including AVI Global Trust (AGT), has voiced concerns over Wacom’s performance and has submitted shareholder proposals for consideration at the company’s Annual General Meeting in June.
AVI’s campaign follows a period of sustained engagement with Wacom, beginning in August 2021, aimed at enhancing corporate value. Despite these efforts, AVI points to the Branded Business segment’s cumulative loss exceeding ¥10 billion since the fourth quarter of the fiscal year ending March 31, 2022. The segment’s performance has not only missed mid-term plan targets but has also lagged behind the TOPIX index during this timeframe.
As Wacom’s largest shareholder through holdings in AGT and other funds, AVI is advocating for a series of resolutions to be voted on at the upcoming Annual General Meeting. These include the establishment of a Transformation Plan Supervisory Committee, the appointment of an outside director with capital markets expertise, and amendments to the Articles of Incorporation to reflect the ’Guidelines for Corporate Takeovers’ set by Japan’s Ministry of Economy, Trade and Industry (METI).
Kazunari Sakai, Head of Research at AVI Japan, emphasized the need for Wacom to align more closely with investor expectations and shareholder interests. Sakai suggested that Wacom could strengthen its global leadership by shortening product development cycles for entry-level products and improving e-commerce channels.
The push for governance reforms by AVI reflects a broader trend of shareholder activism in Japan, where investors are increasingly vocal about corporate governance and performance issues.
This initiative is part of AVI’s strategy to support sustainable enhancement of corporate value in the companies it invests in. The investment management company has a history of nearly four decades of investing in Japanese equities and collectively manages ¥120 billion in the Japanese market.
The information for this report is based on a press release statement.
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