Hong Kong-based activist investor Oasis Management said on Friday it filed a lawsuit against Japanese drugstore operator Kusuri No Aoki‘s 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 declined to 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 and Kao, one of the world’s largest cosmetics firms.
Reuters