Done Deal – Insights from our M&A and Activism team – February 2024
Insights from our M&A and Activism team
Welcome to the latest installment of Done Deal! In this edition, we shift our focus to one of our growth markets – Japan. Val Mack provides invaluable insights from her recent trip, delving into discussions with local advisors on navigating the dynamic landscape of capital markets and managing shareholder activists. Furthermore, we share strategic insights tailored for companies gearing up to tackle challenges posed by such activists. Additionally, we sit down with our latest addition to the team in Japan, Akihiro Nojiri, as he sheds light on emerging market trends.
In other news, our M&A and Activism team is gearing up to participate in the esteemed 36th Annual Tulane Corporate Law Institute. Recognized as the pinnacle conference for M&A, corporate, and securities law, this event promises enriching discussions and networking opportunities. Let us know if you will be attending!
Expert Perspective: 物言う株主 and the Mitsubishi “monster buyback”
In this video, Val Mack, Senior Director, shares some recent insights following her trip to Japan where she focused on discussing the theme of increased shareholder activism in the market.
How Companies in Japan Can Prepare for Shareholder Activists
The increased scrutiny around Japanese company performance has been driven by a confluence of new government regulations and a growing global investor base that is being capitalized on by activists. The Kishida Administration’s recently unveiled “New Capitalism” policy focuses on turning Japanese companies into attractive investment opportunities for both overseas and Japanese investors. As part of this effort, Japan also overhauled its Nippon Individual Savings Account (NISA) to make all investments under this program tax exempt for the lifetime of the investor in an effort to ensure steady and reliable returns. Tokyo’s stock exchange has also begun releasing monthly lists of listed companies that have disclosed plans to optimize its capital management and share price that will help enhance investor returns. As heard in our meetings with Japanese advisors and companies, they are ready and willing to try new approaches as the world around them is changing.
What We’re Up To
Meet our Team: 30 seconds with Akihiro Nojiri
What is your focus area at FTI Consulting?
I joined FTI last July. I have worked in the communications industry for more than a decade. As a communication practitioner, I have three focus areas where I can leverage my experiences as CFO of a listed company and with government.
One is of course M&A and activism. When it comes to activism, we are building an operation with the help of global colleagues. A good thing here is that we have fewer competitors in this space.
The other two focused areas are public affairs and crisis management. These are also growth areas in Japan.
What M&A trends are you seeing in your marketplace?
Activist activity is on the rise in Japan. Other than global activists like Elliott, we have regional and local players. Although Japanese stakeholders remain sceptical of activists, receptiveness to campaigns that align and contribute to the Japanese government agenda have grown. In other words, activists have become more sophisticated and wiser to adapt to local manners and protocols.
Now, the Tokyo Stock Exchange is urging listed companies to take concrete measures to improve share price and boost shareholder value. This so-called “P/B Reform” by TSE is triggering further attention by activists towards companies’ AGMs.
What do you do outside of work that helps you reset and stay sharp for the next professional challenge?
I regularly go to a fitness club, especially on the weekend. Whilst exercising or relaxing in the sauna, I often come up with innovative business ideas. I also enjoy organic wines, with Japan producing some exciting ones these days.
Contact Us
To be added to the distribution list for FTI Consulting’s M&A and Activism Insights, or for further information on the dedicated M&A and Activism team at FTI Consulting, please contact Edward Bridges ([email protected]) Pat Tucker ([email protected]) or Alex Le May ([email protected]).
| The views expressed in this article are those of the author(s) and not necessarily the views of FTI Consulting, its management, its subsidiaries, its affiliates, or its other professionals. ©2024 FTI Consulting, Inc. All rights reserved. www.fticonsulting.com |
