CHICAGO–(BUSINESS WIRE)–RMB Capital (“RMB”) filed shareholder proposals regarding a dividend
increase and retirement of treasury shares for the 98th annual general
shareholders’ meeting at Musashi (7521 JP), which is scheduled to take
place in June 2019. This press release is to disclose RMB’s proposals
prior to the notification of the Annual General Meeting and provide the
shareholders of Musashi with enough time to review the proposals.
Details of RMB’s Proposals
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Dividend increase to 24 yen per share (from expected dividend of 12
yen per share)RMB proposes a year-end dividend of 24 yen
per share for the current fiscal year ending in March 2019. The
proposed amount is an increase of 12 yen from the expected dividend
amount of 12 yen per share. Musashi holds a large amount of cash and
deposits, and RMB asserts that returning more cash to
shareholders—rather than accumulating excess capital
unnecessarily—would serve shareholders’ common interests. Moreover,
the return of excess capital would improve Musashi’s ROE, leading to a
further enhancement in corporate value. Musashi had been paying a
year-end dividend of 20 yen until last year. Therefore, this proposal
seeking a year-end dividend of 24 yen does not deviate significantly
from the amount paid in the past, but is in line with the company’s
policy of “continuing stable dividends.” -
Retirement of treasury shares
RMB believes that there is no
need for Musashi to hold treasury shares. By retiring treasury shares,
shareholders can fully enjoy the benefit of share buyback. On the
other hand, if such treasury shares were to be sold back to investors
through a public offering or third-party placement, it would dilute
earnings per share and damage the interests of existing shareholders
just as if new shares were to be issued. In order to eliminate such
risks it is necessary to retire the treasury shares.
Contacts
Masakazu Hosomizu
RMB Capital
[email protected]
