Those who do not remember their past are condemned to repeat their mistakes.
- George Satayana
Hazama Ando is about to repeat its past mistakes.
Shareholders must stop them for the sake of all stakeholders.
Together, we can improve corporate governance at Hazama Ando.
Hazama Ando Construction (1719 JP) has a history of work safety accidents, including fires and fatalities, underreporting income, and poor capital allocation. Now, they plan to invest ¥100 billion -- approximately 73% of Hazama’s net assets and 77% of its market capitalization -- in real estate and power projects.
Back in 2003, Hazama was forced to restructure and split-off its loss-making real estate division from its profitable construction business. Now, with excess cash of ¥100 billion on hand, they plan to return to real estate again.
Shareholders must unite to protect Hazama’s corporate value and improve corporate governance.
To this end, Oasis has submitted two shareholder proposals:
1. Implementation of a 9.98% share buyback
2. Inclusion of health and safety management provisions to the Articles of Incorporation
Help us help Hazama
Hazama’s poor corporate governance has destroyed corporate value and caused the stock price to trade at a massive discount to intrinsic value. We see upside for the share price of over 140%. Any improvement in corporate governance will both increase corporate value and restore the Company’s valuation in the market.
Hazama’s president received the lowest level of support among its peers at last year’s AGM, as can be seen in the table below. Yet, Hazama has still failed to address its corporate governance issues. Shareholders must take a stand before it is too late
All shareholders that truly care for Hazama’s future will vote FOR the Oasis shareholder proposals at the upcoming AGM.