Activist Campaign
Tokyo Broadcasting System

TBS’ Investment Securities

Given the size of TBS’ “strategic holdings” in relation to total assets, TBS is in reality operating a large asset management business alongside its core broadcasting business.  If TBS were held to the same standards as professional asset managers, or banks and insurance companies, in the business of managing financial assets on behalf of investors, depositors and policyholders, it would be liable for professional negligence and violation of normal risk management rules and regulations.

Professional asset managers would not be permitted to concentrate a portfolio such that one investment accounted for 35% of the portfolio (Tokyo Electron in this case).  To make matters worse, TBS’ “strategic portfolio” is not professionally managed. Rather, the portfolio has been static for many years, never adjusted to account for changing profitability, return on equity or other objective financial benchmarks. Seemingly, the most relevant criterion for inclusion in the “strategic portfolio” is a historical relationship with TBS.

TBS’ concentrated “strategic portfolio” is the equivalent of a gambler putting all their chips on just a few squares at the roulette table.  If there were to be a correction in the Japanese stock market, as occurred in 2008, TBS would be directly exposed to massive losses, magnified by the narrow base of its “strategic portfolio”.  TBS management could not avoid legal responsibility to shareholders for the breach of its duty of care. It is fair to say that the term “strategic” gives too much benefit to the level of rigour made in “constructing” this portfolio.

The size of TBS’ securities portfolio is unparalleled when compared to peers. While the changing dynamics of the broadcasting industry might require a conservative balance sheet, the extent of TBS’ excess capital is unprecedented among peers. We can find no compelling reason as to why TBS needs to hold such a large portion of its assets in investment securities.

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This website, and the information contained herein, (collectively referred to as “the Website”) is being provided for the shareholders of Tokyo Broadcasting Holdings. Inc. (“TBS”) for information purposes only.  Asset Value Investors Limited (“AVI”) is the investment manager of one of the shareholders of TBS, namely British Empire Trust plc (“BTEM”).

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 a written proposal addressed to TBS (the “Proposal”) through which AVI seeks to ask shareholders to vote on a distribution of in-kind shares or cash. The Proposal is accessible through the Website.  AVI created the Website to help enable visitors to reach their own conclusion regarding whether or not to support the Proposal.

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 TBS 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 TBS shareholders under the Japanese Financial Instruments and Exchange Act by virtue of disseminating information through the Website or engaging in dialogue with other TBS shareholders in or through this Website.

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

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、TBS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BTEM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。