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LONDON - Asset Value Investors Limited (AVI), a London-based investment management firm, has publicly urged Wacom Corporation (TSE:6727), a Japanese technology company known for its graphics tablets and related products, to implement significant governance changes. AVI, which manages AVI Japan Opportunity Trust (AJOT) and other funds, has become Wacom’s largest shareholder and is advocating for these changes ahead of Wacom’s Annual General Meeting scheduled for June.
AVI has expressed concerns regarding Wacom’s Branded Business segment, which has suffered a cumulative loss exceeding ¥10 billion since the fourth quarter of the fiscal year ending March 31, 2022. The segment’s performance has not only fallen short of mid-term plan targets but also significantly underperformed the TOPIX index during the same timeframe.
In response to these issues, AVI has submitted several shareholder proposals for consideration at the upcoming meeting. These proposals include the establishment of a Transformation Plan Supervisory Committee, the appointment of an outside director with capital markets expertise, and an amendment to the Articles of Incorporation to reflect the ’Guidelines for Corporate Takeovers’ issued 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. He suggested that by shortening product development cycles for entry-level products and enhancing e-commerce channels, Wacom could strengthen its position as a global leader in its field.
AVI’s campaign and shareholder proposals are part of its strategy to support the sustainable enhancement of Wacom’s corporate value. The investment firm has been engaging with Wacom since August 2021, including meetings with senior management and the submission of letters and presentations aimed at fostering dialogue and encouraging improvements.
This initiative is based on a press release statement from AVI, which has been investing in Japanese equities for almost four decades and collectively manages investments of ¥120 billion in the Japanese market. AVI’s funds, including AJOT and AVI Global Trust (AGT), are publicly traded on the London Stock Exchange (LON:LSEG).
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