RISING WAVE OF SHAREHOLDER ACTIVISM IN TOKYO

A rising wave of shareholder activism has turned Tokyo into a growth market for businesses that offer advice on shareholder relations, as corporate Japan scrambles for help to deal with investors who are no longer silent.

The growing presence of such advisers, including new entrants, shows how Japanese companies are more actively addressing concerns about weak governance, poor allocation of capital and chronic stock underperformance - even those that have not yet been targeted by activists.

With about half of its companies trading below their book value, Japan has become one of the world's most popular destinations for activists looking for targets with big potential for change. A government push for governance reform is adding to the momentum.

Morrow Sodali, launched its own Tokyo office in 2021 after years of working with local partners. Christian Sealey, the company's international CEO, said Morrow Sodali could be poised to grow "very quickly" in Japan, which he said had "all the hallmarks" of the most interesting markets.

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