Fuji Media Holdings' shares surged the most in three months on Tuesday after activist investor Aya Nomura warned of seeking control over one-third of its voting rights. Nomura demands the spinoff or sale of real estate operations and a minimum dividend-on-equity ratio of 4%. The pressure intensifies as the broadcaster works to recover from a sexual assault scandal that has harmed its reputation.
Fuji Media Holdings' shares rose as much as 6.1% in Tokyo on Tuesday morning, marking the biggest gain in three months, following a warning from activist investor Aya Nomura. The daughter of renowned investor Yoshiaki Murakami, Nomura and affiliated entities already hold over 42 million shares and intend to acquire up to 25 million more unless the company spins off or sells its real estate operations. She also calls for a minimum dividend-on-equity ratio of 4%.
The broadcaster, which operates across television, satellite broadcasting, games, and music, is grappling with the aftermath of a sexual assault scandal that has tarnished its reputation and led to losses in sponsors and viewers. This situation positions Fuji Media as a key example of activist investors' increasing influence in Japan. Investors, including Dalton Investments, have urged greater accountability and the separation of the valuable but non-core real estate arm, proposals that the company has rejected so far.
Fuji Media has indicated it might issue free stock acquisition rights if an investor acquires 20% or more of voting shares, a measure often viewed as a poison pill to dilute large holdings. Last month, the company outlined plans to reach a return-on-equity of 5% to 6% by fiscal 2030, aiming to increase it to 8% by fiscal 2033. Its shares have more than doubled this year.
