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Merits and Challenges of Being Publicly Listed in the Era of Unsolicited Takeovers

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In October 2024, Yuya Shimizu, Chief Investment Officer of Hibiki Path Advisors (“Hibiki” “us” or “we”), has written the “Merits and Challenges of Being Publicly Listed in the Era of Unsolicited Takeovers” paper and this is dispatched to all the management and CEOs of our investee companies. We are now making this document publicly available. This paper stands as a follow up the “Six Recommendations” which we had sent to our investee company last year.

“Guidelines for Corporate Acquisitions” by METI, as well as TSE’s actions has ignited the awakening of unsolicited takeovers and increased MBO transactions, and this paper addresses our view on “fundamental purpose of being publicly listed”. Although the paper is directed towards our investee companies we believe it to be useful for all executives of the publicly listed companies.

We believe that the environment surrounding listed companies has undergone substantial changes over the past two to three years, which in turn has altered the purpose of maintaining a public listing. We are sharing an objective assessment on the pros and cons of being publicly listed, focusing on maximizing corporate value, and have suggested that “going private” should also be considered as a viable option.

Additionally, prior to this paper on 9th September 2024, we had sent a letter titled “Request for Consideration Regarding the Privatization (Japanese Only)” to the Board of Directors of one of our investee companies, Japan Pure Chemical Co., Ltd. (4973) addressing the issue directly to one of our portfolio companies.

Merits and Challenges of Being Publicly Listed in the Era of Unsolicited Takeovers(October 2024)

October 24th, 2024

Hibiki Path Advisors Pte. Ltd.
Representative Director, Chief Investment Officer
Yuya Shimizu
info@hibiki-path-advisors.com


While every effort has been made to ensure the accuracy of the data and information contained in this paper, the accuracy cannot be guaranteed. This suggestion does not constitute a solicitation to subscribe for, or a recommendation to buy or sell, any specific securities, nor does it constitute investment, legal, tax, accounting, or other advice.