Katakura Industries Co., a Japanese company founded more than a century ago, is no stranger to reinvention. Once a silk producer, it has diversified into making underwear, manufacturing fire engines, operating shopping malls and even bee-keeping.
Now, activist hedge fund Oasis Management Co. is pushing Katakura to reinvent itself yet again — this time by ditching businesses that don't meet certain profit targets. The Hong Kong-based fund, which owns a 3 percent stake in Katakura, says the diversity of ventures isn't sustainable and has put forward three proposals aimed at improving profitability at this week's shareholders meeting in Tokyo.
These proposals promise to shake up the status quo at Katakura, where tradition reigns and new employees visit its former red brick silk factory, which is now heritage listed, as part of their induction into the company.