Kempen Capital Management issues open letter to Fujitec’s Board of Directors
Today, Kempen Capital Management N.V. (Kempen) issued an open letter to Fujitec’s Board of Directors in which we express our concerns over the disappointing mid-term plan and inadequate corporate governance at Fujitec Co., Ltd. (Fujitec). Funds managed and accounts advised by Kempen currently own approximately 3.5% of the outstanding shares of Fujitec.
Kempen started investing in Fujitec in August 2014 through its Global Small-cap strategy and ever since has been in frequent contact with the company. The underperformance versus peers and the structural undervaluation of the company's stock led us to provide numerous suggestions to improve shareholder communications, capital efficiency, corporate governance and the geographical footprint.
Jan Willem Berghuis, Head of Small-Caps at Kempen: ‘As long-term engaged shareholder, we take our role and responsibility very seriously. We consider it our fiduciary duty to share and discuss key observations and make suggestions to drive long-term sustainable value for all Fujitec stakeholders. While steps have been taken to address some of the issues that we raised, the mid-term plan released by Fujitec on 22 December 2021 nevertheless failed to adequately address our main concerns. We continue to believe that Fujitec is an intrinsically good business with an even greater potential, if its leadership team would embrace the opportunities to enhance operational efficiency, capital efficiency and corporate governance. Consequently, we are taking the step of publicly voicing our concerns, and call on the Board of Directors to take action.’
A copy of the open letter can be found here:
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Kempen Capital Management N.V. (Kempen) is licensed as a manager of various UCITS and AIFs and authorised to provide investment services and as such is subject to supervision by the Netherlands Authority for the Financial Markets. As asset manager KCM may have investments, generally for the benefit of third parties, in financial instruments, like those mentioned in this document and it may at any time decide to execute buy or sell transactions in these financial instruments. Kempen currently has invested in shares of the company mentioned.
About Kempen Capital Management
Kempen Capital Management is a specialist asset manager with a focused approach and a clear investment philosophy. We believe in long-term stewardship for our clients and other stakeholders. Kempen provides sustainable returns, fiduciary management services, manager selection, portfolio construction and monitoring, alongside a number of actively-managed investment strategies. As of 30 June 2021, Kempen Capital Management had a total of €88.3 billion in client assets under management.
Kempen Capital Management, part of Van Lanschot Kempen NV, is a specialist and independent wealth manager. Kempen Capital Management NV is licensed as a manager of various UCITS and AIFs and authorised to provide investment services and as such is subject to supervision by the Netherlands Authority for the Financial Markets. Kempen Capital Management (UK) Ltd is licensed as a manager and subject to supervision by the Financial Conduct Authority.
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