In brief
Hong Kong-based activist investor Oasis Management has filed a lawsuit against the president and vice president of Japanese drugstore operator Kusuri No Aoki, alleging governance failures. Oasis claims the Aoki brothers issued stock options at a significant discount, harming minority shareholders, and seeks 7.2 billion yen in damages. Oasis, holding a 9.7% stake in Kusuri No Aoki, is urging shareholders to vote against the re-election of the Aoki brothers and another director at the upcoming shareholders’ meeting. This action is part of a broader trend of increasing activist investor campaigns in Japan.
Press release
TOKYO, July 12 (Reuters) – Hong Kong-based activist investor Oasis Management said on Friday it filed a lawsuit against Japanese drugstore operator Kusuri No Aoki’s (3549.T), president and vice president citing “serious governance failures”.
It is the latest example of high-profile activist campaigning in Japan, a practice which is on the rise amid global investor interest in changing corporate governance and improved shareholder returns at Japanese firms.
Oasis alleged in the lawsuit that Aoki issued stock options to President Hironori Aoki and his younger brother, Vice President Takanori Aoki, in 2020 at a steep discount to their fair value and at the expense of minority shareholders.
The activist investor said it was seeking compensation of about 7.2 billion yen ($45.21 million) in damages in the lawsuit filed against the two brothers, other family members and Aoki director Ryoichi Yahata.
It also urged Kusuri No Aoki shareholders to vote against the re-election of the Aoki brothers and Yahata at a general shareholders’ meeting on Aug. 16.
Kusuri No Aoki was not immediately available for comment.
Oasis is Aoki’s third-largest shareholder with 9.7% of shares. It has engaged with the company since 2022 and first launched a campaign against the firm in 2023, it said in a presentation.
Oasis is among the most prominent activist investors in Japan and this year has announced a spate of campaigns with targets including rival drug store chain Ain (9627.T), and Kao (4452.T), one of the world’s largest cosmetics firms.
Company: Oasis Management Company
Oasis is a private investment fund management company, which manages global, market neutral, multi-strategy funds with a focus on Asia. Oasis operates offices in Cayman Islands; Hong Kong; Tokyo, and Austin, Texas.
Source: Reuters
