Oasis has been engaging with Hokuetsu since 2019 to encourage the Company to improve corporate governance, increase its corporate value, and improve profitability.
In October 2021, Oasis announced a public engagement campaign (“A Better Hokuetsu”) (https://abetterhokuetsu.com ), encouraging Hokuetsu to sell its stake in Daio. Since then, Daio’s share price has declined by -48%, resulting in a loss of economic value to Hokuetsu and its shareholders of JPY40 billion, equivalent to five years of Hokuetsu’s net profit. For more information on this and other issues resulting from governance failures at Hokuetsu, please see “Why Accountability NOW”.
Today, Oasis is the largest shareholder of Hokuetsu, owning over 18% of the Company’s shares outstanding.
Mr. Seiko Kishimoto has been Hokuetsu’s CEO for approximately 15 years. He has been a board member of Hokuetsu for approximately 24 years. During this period, he has consistently failed to meet company performance targets and missed out on business opportunities amid a decline in the paper industry.
Mr. Seiko has refused to meet with Oasis to discuss these issues, despite Oasis’s multiple repeated requests over a period of years, and despite Oasis being the largest shareholder.
The time has come to end Mr. Kishimoto’s control and make way for better corporate governance and clear, objective decision-making.
Please find our “A Better Hokuetsu Campaign” in the link below