HONG KONG--(BUSINESS WIRE)--Oasis Management Company Ltd. (“Oasis”) is the manager to funds that beneficially own 8.35% of Katakura Industries Co. Ltd. (“Katakura” or the “Company”), making Oasis the Company’s largest minority shareholder. Oasis has adopted the Japan FSA’s “Principles for Responsible Institutional Investors” (a/k/a Japan Stewardship Code) and in line with those principles, Oasis monitors and engages with its investee companies.
Katakura, an historic Japanese company with a legacy spanning more than a century, has recently taken steps that demonstrate that it is embracing the country’s corporate governance changes, and stands as an example of what engagement and constructive dialogue with shareholders can achieve. Oasis stands with our fellow shareholders in commending Katakura on the dramatic improvements unveiled over the past several months.
Oasis has been a long-term shareholder of Katakura. Today, following our engagement, we are very pleased to see that the Company has made great strides in building “A Better Katakura”.
In the past few months alone, Katakura has closed loss-making businesses, withdrawn from more than four business units, and is in the process of restructuring others, in line with Oasis’s suggestions. As encouraged by Oasis, the Company has introduced formal targets for ROE, ROIC and NOI, which has led to an expected 30% increase in operating profit next year. Further cost-cutting and wise investments will see Katakura increase profitability in both the short- and long-term. In addition, Katakura’s plans for the redevelopment of its Saitama properties will see earnings from real estate more than double and substantially increase the value of the underlying real estate. As a result, we believe that Katakura’s value will more than triple in the medium-term.
We congratulate Jyoko-san on his recent promotion to President. We are impressed with his commitment to modernizing the business and expect that he and Chairman Sano will be excellent partners in driving Katakura forward. We also wish to congratulate Omuro-san on his appointment as new external director of the Company. We believe his deep experience in real estate will allow him to contribute to the development of the Saitama property development project and further increase corporate value.
Seth Fischer, Founder and Chief Investment Officer of Oasis, said:
“As long-term shareholders, we are encouraged by the recent actions taken by Katakura, which we see as evidence of a paradigm shift. We have high hopes that the Company will continue to grow its corporate value over the medium- and long-term, which will benefit all stakeholders.”
Oasis Management Company Ltd. manages private investment funds focused on opportunities in a wide array of asset classes across countries and sectors. Oasis was founded in 2002 by Seth H. Fischer, who leads the firm as its Chief Investment Officer. More information about Oasis is available at https://oasiscm.com. Oasis has adopted the Japan FSA’s “Principles for Responsible Institutional Investors” (a/k/a Japan Stewardship Code) and in line with those principles, Oasis monitors and engages with our investee companies.