Activist Campaign
Transforming Teikoku


LONDON–Asset Value Investors (“AVI”) announces that its dividend proposal received a record level of votes at the Annual General Meeting of Teikoku Sen-i (“Teikoku Sen-i” or the “Company”) (TSE: 3302) on 27th March 2020.  

AVI’s proposal for a ¥76 per share dividend received 24.7% approval, topping the level of support for dividend proposals submitted by shareholders in previous years.

AVI’s proposal for a ¥2 billion share buyback received good support with a 22.0% approval.

AVI CEO Joe Bauernfreund commented, “Considering that “Group Shareholders” own a significant portion of the company the level of support for our proposals is encouraging.”

“General shareholders like ourselves who hold their shares as an investment, and not as a token of separate business relationships, are sending Teikoku Sen-i management and affiliated group shareholders the message that a balance sheet bloated with investment securities and other financial assets must be reformed.” 

“There is no way to justify a balance sheet in which 64% of total assets consist of cash and investment securities, including a “strategic holding” in an unrelated real estate company Hulic accounting for 32% of total assets”.

“We remain hopeful that the Company’s affiliated group shareholders will encourage management to rationalise Teikoku Sen-i’s value-destructive capital structure.”

The Company’s proposal to renew its shareholder rights plan (“poison pill”) was opposed by 21.9% of shareholders, reflecting the view of Institutional Shareholder Services (“ISS”) and general shareholders that the effect of the plan is to entrench incumbent management.

Reflecting the recommendation of proxy advisory firm ISS that President Tsuyoshi Shiraiwa be held responsible for the Company’s questionable capital management, shareholder disapproval for his re-election was higher than in the preceding year.

AVI looks forward to continuing its dialogue with the Company as long-term shareholders.

About AVI

Founded in London in
1985, AVI has a long history of investing in Japan. Over the past few years we
have observed the heightening interest in Japan driven by corporate governance
reforms. What we have seen convinces us that profound change is underway, and we
launched a dedicated fund, AVI Japan Opportunities Trust (‘AJOT’), to target
the plentiful opportunities the reforms will bring. Across AJOT and AVI Global
Opportunities Trust (‘AGT’), AVI has ¥55bn invested in Japan.

We always take a long-term view with our investments, seeking high-quality companies that the market misunderstands and undervalues. We work with company management and boards to improve long-term corporate value.

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Legal disclaimer

This website, and the information contained herein, (collectively referred to as “the Website”) is being provided for the shareholders of Teikoku Sen-i Co., Ltd. (“Teikoku”) for information purposes only.  Asset Value Investors Limited (“AVI”) is the investment manager of two of the shareholders of Teikoku, namely AVI Global Opportunities Trust (“AGT”) and AVI Japan Opportunities Trust (“AJOT”).

AVI is authorised and regulated by the UK Financial Conduct Authority (“FCA”) and is also registered as an Investment Advisor with the United States Securities and Exchange Commission (the “SEC”) under the United States Investment Advisors Act of 1940.

The Website is directed only at Professional Clients or Eligible Counterparties as defined by the UK FCA.

AVI sent written proposals addressed to Teikoku (the “Proposals”) through which AVI seeks to ask shareholders to vote on an increased dividend and the introduction of a buyback programme.  The Proposals are accessible through the Website.  AVI created the Website to help enable visitors to reach their own conclusion regarding whether or not to support the Proposals.

The Website was created solely for the purpose mentioned above and is provided for information purposes only.  AVI is by no means soliciting or requesting other shareholders of Teikoku to jointly exercise their shareholders’ rights with AVI (including, but not limited to, voting rights).

AVI declares that it does not intend to be treated or deemed a “joint holder” (kyo-do hoyu-sha) with other Teikoku shareholders under the Japanese Financial Instruments and Exchange Act by virtue of disseminating information through the Website or engaging in dialogue with other Teikoku shareholders in or through this Website.

The Website exclusively represents the opinions, interpretations and estimates of AVI in relation to Teikoku’s business and governance structure.  AVI is expressing such opinions, interpretations and estimates solely in its capacity as an investment manager of AGT and AJOT.

The information contained herein is derived from proprietary and non-proprietary sources deemed by AVI to be reliable.  While AVI believes that reasonable efforts have been made to ensure the accuracy of the information contained in the Website, AVI makes no representation or warranty, expressed or implied, as to the accuracy, completeness or reliability of such information.








本ウェブサイトは、帝繊の事業およびガバナンス体制に関するAVIの見解、解釈 、評価を掲載したものであり、AVIはあくまでAGTおよびAJOTの資産運用管理者の立場からこれらの見解、解釈 、評価を述べております。

本ウェブサイトに掲載される情報は、AVIが信頼できると判断した専有又は非専有の情報源から得たものです。AVIは本ウェブサイトに掲載する情報の正確性を確保するために合理的な注意を払っておりますが、その正確性、完全性および 信頼性について明示・黙示にかかわらず一切の表明・保証をするものではありません。