TOKYO, May 18 (Pulse News Wire) – KYOCERA Corporation (6971.T) rejected a shareholder proposal submitted by Oasis Investments II Master Fund Ltd. for changes to its board composition and share repurchase plans.
The proposal includes removing a director, appointing external directors, and increasing share buyback limits. The company's board unanimously decided against the proposals due to concerns over their impact on long-term growth and capital efficiency. Specifically, the board opposed the request for additional share buybacks, arguing that the proposed amount exceeds optimal levels necessary for balancing investment opportunities and shareholder returns. Regarding the removal of Director Mitsuru Yamaguchi, the board believes he remains crucial for implementing ongoing reforms and transitioning to a new management structure.
They also questioned the need for replacing independent outside directors, citing existing candidates' qualifications and experience. KYOCERA emphasized its commitment to achieving a future target Return on Equity (ROE) of over 10%, aiming to enhance enterprise value through strategic investments and optimized capital allocation. The company plans to execute up to ¥1 trillion worth of share repurchases over two fiscal years ending March 2028, alongside maintaining robust dividend payouts. In addition, the board highlighted the importance of retaining key personnel like Yamaguchi during the transition phase to ensure continuity and effective execution of reform initiatives.
The company intends to continue focusing on sustainable growth and improving operational performance while adhering to its capital policy framework.
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