3D urges shareholders to reject new term for Nippon Steel heads
Singapore-based 3D Investment Partners has urged other shareholders in Nippon Steel to vote against reappointing its president and vice chairman, both of whom have championed a drawn-out U.S. takeover that threatens "irreversible' value destruction.
Nippon Steel's large-scale capital investment plan that is estimated to reach ¥10 trillion ($69 billion) "significantly' exceeds the company's market value, thereby "heightening the risk of irreversible damage to corporate value,' 3D said in a statement ahead of the steelmaker's June 24 annual general shareholder meeting. The steelmaker's market value is about ¥3 trillion on Tuesday, compiled data show.
The Tokyo-based company's investment plan includes the acquisition of United States Steel, additional investments in U.S. Steel, and de-carbonization initiatives. Nippon Steel operates "with a capital allocation policy that lacks both transparency and discipline,' 3D said.
The criticism comes as Japan's largest steelmaker has stuck with its plan to purchase U.S. Steel through a long and messy political storm, even after the White House under then-U.S. President Joe Biden blocked it in January. Nippon Steel is on pace to finalize the combination with U.S. President Donald Trump's administration before a deal deadline later this month, it was reported last week.
The $14.1 billion cash acquisition was already pricey — a 142% premium to the level shares were trading at before U.S. Steel effectively put itself on sale in 2023 — and now comes with costly commitments and the looming prospect of political intervention.
A Nippon Steel spokesperson declined to comment on matters concerning individual shareholders.
Nippon Steel President Tadashi Imai bears responsibility for raising concerns about damage to its corporate value, while Vice Chairman Takahiro Mori, as the finance and investor relations officer, has abandoned his duty to explain such capital allocation decisions, 3D said.
3D has had discussions with Nippon Steel, and during one session, it requested that the acquisition of U.S. Steel be put to a shareholder vote, but this was rejected by Nippon Steel, according to the statement.
The Singaporean investment firm has been an active player in Japan, taking stakes in companies including alcoholic beverage maker Sapporo Holdings, drug wholesaler Toho Holdings and women's underwear company Wacoal Holdings.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NHK
13 minutes ago
- NHK
Reuters: US customs receipts quadruple to record $23 bil. in May due to tariffs
Reuters news agency says US customs receipts nearly quadrupled in May from a year earlier to a record 23 billion dollars, "due to President Donald Trump's steep new import tariffs." Reuters says Trump's tariffs on goods from nearly all trading partners that took effect in April began to show through the following month in significant amounts in port-of-entry collections. The news agency quoted a report by the US Treasury Department. Trump has also imposed tariffs on imports of steel products, aluminum and automobiles from countries and regions including Japan. In a social media post in May, Trump praised the "strong" jobs figures and hailed the "billions of dollars" pouring into the country from tariffs.
Nikkei Asia
an hour ago
- Nikkei Asia
Trump tariffs' fate tied to Nixon-era case with zipper maker YKK
TOKYO -- A ruling by a U.S. trade court finding much of President Donald Trump's tariff regime illegal, turning a spotlight on the constitutional separation of powers, hearkens back to a case five decades ago in which a Japanese company spurred courts to hit the brakes on a president's trade policy. The U.S. Court of International Trade on May 28 found that Trump's sweeping "reciprocal" tariffs, as well as duties targeting Canada, Mexico and China over their alleged failure to curb the flow of fentanyl into the country, were "unlawful." An appeals court temporarily reinstated the duties the following day.
NHK
an hour ago
- NHK
Australia 'confident' AUKUS goes forward
Australian Defense Minister Richard Marles said he is "confident" that AUKUS will proceed. This comes after the Trump administration launched a review into the trilateral security pact. A US Department of Defense official told NHK on Wednesday that the review is to ensure the pact aligns with President Donald Trump's "America first" agenda. The AUKUS defense pact between Australia, the United Kingdom and the United States was reached in 2021 during the Biden administration. Under the deal, Australia would acquire nuclear-powered attack submarines from the US in the 2030s. Defense Minister Marles downplayed the news saying it is a multi-decade program where governments come and go. And "when new government's come into place I think you will see them undertake reviews of this kind and that's fine." The Financial Times reported that the review is being led by Elbridge Colby, a senior defense department official who has described himself as skeptical of the pact. The review comes after Defense Secretary Pete Hegseth called upon Australia to raise defense spending to 3.5% of GDP. An anticipated meeting between President Donald Trump and Prime Minister Anthony Albanese looms on the sidelines of the Group of Seven summit starting Sunday in Canada. Local media points out that Trump may use the review to pressure Australia into increasing the defense budget.
