KURABO INDUSTRIES LTD. [3106.T]
TOKYO, May 14 (Pulse News Wire) – Kurabo Industries Ltd. (3106.T) rejected a shareholder proposal submitted by AVI Japan Opportunity Trust PLC ahead of its upcoming annual general meeting scheduled for April 16, 2026.
The board unanimously decided against all proposals related to changes and abolishment of the company's large-scale share purchase behavior response strategy during their meeting held today. The proposal sought amendments to the company’s articles of incorporation to require shareholder approval for any future buyout policies and proposed the immediate abolition of the existing policy. However, the board opposed both motions citing concerns that mandatory shareholder approval could hinder flexible and timely responses to potentially harmful takeover attempts.
Kurabo highlighted its ongoing efforts to enhance enterprise value through initiatives such as mergers and acquisitions, capital efficiency improvements, and active shareholder returns. In fiscal 2026, despite challenging conditions in semiconductor manufacturing, the company met its initial targets set out in its “Accelerate'27” plan, achieving operating profit of ¥13.00 billion and ROE of 10.2%. Additionally, the company plans to reduce policy holdings to below 20% of consolidated net assets by March 2027.
An independent committee also reviewed the proposal and concluded that there was no need to abolish the current policy due to potential risks to shareholders' interests.
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