Dalton Investments is joining forces with other investors to pressure Fuji Media Holdings to spin off its real estate arm, the latest development in a situation that has become a litmus test for shareholder influence in Japan.
Dalton’s co-founder James Rosenwald said he has spoken with Aya Nomura, the Japanese broadcaster’s single largest outside shareholder and the eldest daughter of prominent activist investor Yoshiaki Murakami. Spinning off the property unit may double the entertainment group’s value, according to Rosenwald.
Dalton is trying to pressure Fuji Media after the broadcaster earlier this month spurned the fund’s proposal for 12 new directors, which included SBI Holdings' Yoshitaka Kitao, an outspoken critic of corporate governance practices in Japan. Dalton is also demanding the media group unwind cross shareholdings. Fuji Media has said it plans to continue to invest in real estate, a sector it says will generate further growth.
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