Investor Relations

Due to expectations about reforms at Japanese listed companies, Japan’s capital markets have become the focus of attention for global markets, and the Nikkei Stock Average recorded its highest level of the last 34 years. As expectations of the Tokyo Stock Exchange continue to rise for “management that is conscious of cost of capital and stock price,” the number of activists targeting listed companies has been increasing, and the competition for control of listed companies and the securing of stable voting rights have been gaining attention, as evidenced by the active exercise of the right to make shareholder proposals. In addition, momentum for corporate restructuring and business reorganization is increasing with strategic buyers (operating companies) showing movement toward “takeover bids without consent” and “implementations of counteroffers” based on “Guidelines for Corporate Takeovers,” formulated by the Ministry of Economy, Trade and Industry in August 2023.

Amid rising expectations for “management that is conscious of cost of capital and stock price,” cross-shareholdings are being cancelled and institutional investors and financial institutions are becoming more and more strict about the exercise of voting rights. As for corporate restructuring and M&As, pressure is growing on management control, with intensified movement by activist funds as well as takeover bids being implemented by operating companies without prior consent. Risks related to management control and the voting rights of listed companies in Japan are being increasingly heightened. As shown in the Group’s key concept, the “Power of Equity®,” capital risks are growing from factors such as corporate restructuring and business reorganization under external pressure from “shareholders,” which significantly affects the survival and control of listed companies in Japan.

Under these circumstances, our group—as an independent equity consulting and financial advisory group not affiliated with any financial organization, whose core business is proxy advisory without being on the activist side—will leverage both our consulting services related to shareholder voting rights and our M&A advisory services related to management control, while supporting the sustainable growth of listed companies in Japan.

We are sincerely grateful for the continued generous support of our shareholders.