April 3, 2019
On April 3, 2019 (Tokyo time), Dalton Investments delivered a second minority shareholder proposal to the Board of Directors of Shinsei Bank, Limited (the “Bank”), a company held in the accounts of various Dalton clients. Further to Dalton’s core investment principles of “alignment of interest,” the proposal requests the appointment Dalton co-Founder Jamie Rosenwald to the Bank’s Board of Directors, where he would pursue (i) caps on Board compensation, (ii) implementation of a new compensation system, and (iii) implementation of a share repurchase and cancellation program of Bank shares.
The full proposal is available here.
The proposal is the culmination of dialogue with the Bank going back to the letters Dalton delivered to the Bank on February 18, 2019 and March 23, 2017, available here and here, and Dalton’s 2018 minority shareholder proposal, available here. This effort continues Dalton’s commitment to corporate engagement in Japan, starting with the management buyout of Sun Telephone in 2006, and continuing through Dalton’s acceptance of the Japan Stewardship Code in 2016, and a Dalton team member joining the board of directors of Prestige International also in 2016.
About Dalton Investments
Dalton Investments LLC is a value-focused investment management firm with expertise in Asia and global equities. Headquartered in Los Angeles, with subsidiary offices in Tokyo and Mumbai, Dalton manages $3.7 billion (February 28, 2019) in actively managed long-only and long/short strategies for pensions, endowments, foundations, financial institutions and family offices.