AJOT’s NAV up +3.3% after Secom announcement
RNS Number : 2238A
AVI Japan Opportunity Trust PLC
28 May 2021
 

AVI Japan Opportunity Trust plc ("AJOT") NAV up +3.3% after Secom announcement

 

London 28 May 2021

 

Today, after market close in Japan, Secom announced a tender offer for its subsidiary company Secom Joshinetsu at a share price of ¥6,350, a 66% premium to the undisturbed closing price. Secom Joshinetsu accounted for 5.0% of AJOT's NAV at the undisturbed closing price, and, at the tender price, will result in a 3.3% increase in AJOT's NAV.

 

AJOT has been a shareholder in Secom Joshinetsu since January 2019 and we have been engaging with its Board of Directors and parent company, Secom, on ways in which to improve its corporate governance and valuation. We argued the benefits of Secom Joshinetsu being acquired by Secom, highlighting that the conflict of interests between minority shareholders and Secom was leading to a depressed valuation, which could be resolved by taking Secom Joshinetsu private at a materially higher share price. Today's tender offer proves the value of Secom Joshinetsu and endorses the benefits of our engagement strategy.

 

The potential for take-outs of listed subsidiaries on the back of improvements in corporate governance is a key theme within AJOT's portfolio, and the Secom Joshinetsu tender offer follows similar successes with two of Toshiba's listed subsidiaries in November 2019. An additional 15% of AJOT's portfolio aside from Secom Joshinetsu remains exposed to the listed subsidiary theme.

 

Contact

 

Daniel Lee

[email protected]

 

 

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
MSCFLFILEFITFIL