Fuji Media Holdings¡¯ shares surged the most in three months on Tuesday after activist investor Aya Nomura ratcheted up pressure on the influential broadcaster with a warning that she¡¯s prepared to gain control over one-third of its voting rights.
The daughter of Japan¡¯s most famous and controversial investor, Yoshiaki Murakami, Nomura and vehicles linked to her now hold more than 42 million shares of Fuji Media and plan to buy as many as 25 million more, if Fuji Media fails to take steps to spin off or sell its real estate operations, the company said the previous day. Nomura also demands that Fuji Media set a minimum dividend-on-equity ratio of 4%, it said.
Fuji Media, which is trying to recover from a sexual assault scandal that¡¯s damaged its reputation and cost it sponsors and viewers, has become a test case of activist investors¡¯ growing clout in Japan. Its stock rose as much 6.1% Tuesday morning in Tokyo.
The broadcaster ¡ª whose empire spans TV, satellite broadcasters, games and music ¡ª has been in a standoff against investors including Dalton Investments, which alongside Nomura has called for more accountability and a spinoff of its valuable but noncore real estate arm. Fuji Media has so far rejected such proposals.
The company previously said it would consider issuing free stock acquisition rights if an investor buys up 20% or more of its voting shares. The move, seen as a poison pill, is often used to potentially dilute ownership of large shareholders.
Last month, Fuji Media said it plans to achieve a return-on-equity of 5% to 6% in fiscal 2030, which it aims to raise to 8% in fiscal 2033. Shares of Fuji Media have more than doubled this year.
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