RMB Capital Proposes Musashi Dividend Increase and Retirement of Treasury Shares
CHICAGO--(BUSINESS WIRE)--May 28, 2019--
RMB Capital (“RMB”) filed shareholder proposals regarding a dividend increase and retirement of treasury shares for the 98th annual general shareholders’ meeting at Musashi (7521 JP), which is scheduled to take place in June 2019. This press release is to disclose RMB’s proposals prior to the notification of the Annual General Meeting and provide the shareholders of Musashi with enough time to review the proposals.
Details of RMB’s Proposals
- Dividend increase to 24 yen per share (from expected dividend of 12 yen per share)
RMB proposes a year-end dividend of 24 yen per share for the current fiscal year ending in March 2019. The proposed amount is an increase of 12 yen from the expected dividend amount of 12 yen per share. Musashi holds a large amount of cash and deposits, and RMB asserts that returning more cash to shareholders—rather than accumulating excess capital unnecessarily—would serve shareholders’ common interests. Moreover, the return of excess capital would improve Musashi’s ROE, leading to a further enhancement in corporate value. Musashi had been paying a year-end dividend of 20 yen until last year. Therefore, this proposal seeking a year-end dividend of 24 yen does not deviate significantly from the amount paid in the past, but is in line with the company’s policy of “continuing stable dividends.”
- Retirement of treasury shares
RMB believes that there is no need for Musashi to hold treasury shares. By retiring treasury shares, shareholders can fully enjoy the benefit of share buyback. On the other hand, if such treasury shares were to be sold back to investors through a public offering or third-party placement, it would dilute earnings per share and damage the interests of existing shareholders just as if new shares were to be issued. In order to eliminate such risks it is necessary to retire the treasury shares.
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CONTACT: Masakazu Hosomizu
KEYWORD: UNITED STATES ASIA PACIFIC NORTH AMERICA ILLINOIS JAPAN
INDUSTRY KEYWORD: PROFESSIONAL SERVICES CONSULTING FINANCE OTHER PROFESSIONAL SERVICES
SOURCE: RMB Capital
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PUB: 05/28/2019 08:00 PM/DISC: 05/28/2019 08:00 PM