Summary of AVI’s Shareholder Proposals
AVI’s shareholder proposals for a ¥76/share dividend and 3% share buyback are intentionally modest. The proposals are intended to be the first step toward much-needed balance sheet reform. If Teikoku’s “Group Shareholders” will acknowledge the need to improve Teikoku’s balance sheet efficiency in the interests of all shareholders, AVI is confident that its proposals will receive majority support.
(1) Increase dividend amount to limit future cash build up
- Propose a ¥76 dividend for a 50% payout ratio, instead of management’s forecasted ¥40 and 26% payout
(2) Introduce a modest buyback to reduce the current cash burden
- Propose a buyback of ¥2bn, amounting to 3% of outstanding shares, which can be funded by a 10% sale of Teikoku’s stake in Hulic
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