Dalton Investments announces that it has submitted a proposal aimed at further enhancing the corporate value of Senko Group Holdings (“Senko”) and is publishing materials explaining the details of the proposal.
Senko possesses strong competitive advantages in its core logistics business and has achieved consistent growth over many years. On the other hand, the non-logistics businesses that the company has expanded into in recent years are currently not generating returns commensurate with their cost of capital and may hinder the repeatable growth that has historically been driven by the logistics segment. In addition, a series of developments suggesting issues with capital discipline and governance has emerged, leading us to believe that strengthening the company’s governance framework is an urgent priority. As part of our efforts to support the further enhancement of Senko’s corporate value, we are proposing a candidate for independent director. For our views, key concerns, and details of the proposal, please see here