Cerberus recently upped its stake in the Japanese company by three per cent to 35.48 per cent via a tender offer, allowing it to veto major board decisions. It also plans to appoint eight new directors to the board, which would give it nine out of 18 seats.
Seibu has opposed the firm’s efforts to increase its shareholding with president Takashi Goto saying that proposals from Cerberus would hurt the company’s mid- and long-term strategy.
In a letter to Goto Cerberus pointed out that the business missed its earnings target, while also criticising the management for its governance and disclosure practices, said Reuters. It also asked Goto to explain how the board is supervised and held responsible for its performance.
“Please explain in a specific way so that shareholders, who have lost opportunities to trade shares over eight years since delisting, can be convinced,” said Cerberus, according to the report.
The management plans to respond at the upcoming shareholders meeting, which will take place on June 25.
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