Asset Value Investors Voices Concerns Over Corporate Governance and Directors' Credibility at Digital Garage
Asset Value Investors ("AVI") raises governance issues at Digital Garage (4819:JP) and announces intention to vote against the re-election of directors at next AGM.
- Asset Value Investors ("AVI") raises governance issues at Digital Garage (4819:JP) and announces intention to vote against the re-election of directors at next AGM.
- Over this period, AVI engaged with the board privately by sending two presentations and five letters to encourage corporate governance and structural reforms.
- Since the announcement, the share price fell by -39%, resulting in a loss of JPY 90 billion in shareholder value.
- AVI believes that Digital Garage's poor performance, unconvincing growth strategy and inefficient holding structure have resulted in the company trading around 40% below its intrinsic value.