Hibiki Path Advisors (“we”, “us”) today submitted a revised Large Shareholding Report following a 1% increase in our stake in JAPAN PURE CHEMICAL CO., LTD. (“the Company”, “JPC”). We now hold 20.35% of the Company’s shares (21.35% excluding treasury shares).
In the outcome of the shareholder proposal we disclosed earlier, Item 11 “Partial amendment to the Articles of Incorporation to change the decision-making authority for dividends from surplus, etc.”, received 49% of the vote but was rejected. However, based on our calculations, the proposal was supported by approximately 73% of general individual shareholders and institutional investors¹.
Considering the recent increase in our stake, if we were to gain the same level of support from shareholders as we did for Item 11, this would represent support of around 52% of total shareholder voting rights (equivalent to 76% support from general individual shareholders and institutional investors). Although Item 11 was a special resolution, we take it as a positive indication that, depending on the proposal, we are now able to gain majority approval. We will continue to strengthen our constructive engagement to ensure the common interests of all shareholders.
As we stated in our public letter dated Sep 9 2024, “Request for Consideration of Privatization”, we have proposed to the Company’s management to execute a flexible and dynamic strategic actions to enhance corporate value, including various forms of privatization. Additionally, it has been reported that JSR, a major semiconductor materials company, went private by the government-backed investment fund Japan Investment Corporation (JIC), while Taiyo Holdings, the world’s largest solder resist manufacturer, has reportedly received proposals from many private equity firms. In the functional chemicals industry, which is characterized by many niche players, we are beginning to see signs of change similar to those observed in Europe and the US.
We remain fully committed to exploring paths towards maximizing the Company’s corporate value. To our fellow shareholders, and to the employees who are the true source of the Company’s value, we sincerely ask for your continued support.
¹Assuming that shareholders presumed to be related to JPC or involved in cross-shareholdings voted against.
This post does not constitute a solicitation for an offer to acquire or recommend the purchase or sale of specific securities, or advice on investment, legal, tax, accounting, or any other matters. In the event of any discrepancy or conflict between the English and Japanese versions, unless otherwise noted, the meaning of the Japanese language version shall prevail unless otherwise expressly indicated.