A Better Way for JR Kyushu

Fir Tree Partners has been a shareholder in JR Kyushu since its initial public offering in 2016 and strongly believes in JR Kyushu’s long-term growth potential. 


As adoptees of Japan’s Stewardship Code, we have maintained an ongoing dialogue with JR Kyushu over the past two and a half years and made numerous suggestions to management in order to adopt industry best practices common to Japan and enhance the long-term value of the Company. These non-operational suggestions have included: improving disclosure such as returns on real estate, adding outside industry experts, lowering the cost of capital, clarifying the target capital structure, adopting a stock compensation plan for management and hosting a foreign investor day in Kyushu. 


As JR Kyushu embarks on its next 3-year Medium Term Business Plan its return on equity (ROE) and operating profit targets are set to decline significantly despite ¥239bln in capex investment over the last 3 years and an additional ¥340bln over the next 3 years. Fir Tree firmly supports targeted growth investment but believes this must be balanced with shareholder returns and best corporate practices in line with Japan’s Corporate Governance Code. These objectives can be achieved without changing the operations of the business.


Fir Tree applauds JR Kyushu’s decision to propose its own stock-linked compensation plan for management, although we were disappointed by the Company’s decision to publicly oppose our other shareholder proposals. As such, we are sharing what we believe to be ‘A Better Way for JRK’ in order to encourage other shareholders to support our reasonable suggestions for the Company. 

Fir Tree Comments on Shareholder Proposals Delivered to JR Kyushu to Help the Company Achieve its Full Potential
NEW YORK / TOKYO – May 20, 2019 
Fir Tree Partners ("Fir Tree"), manager of certain funds that reported collective beneficial ownership of approximately 6.1% of the outstanding shares of Kyushu Railway Company ("JR Kyushu" or the “Company") (TSE ticker 9142) in the amendment to their large shareholding report disclosed on March 22, 2019, today issued the following statement regarding Fir Tree’s recent shareholder proposals, for the Company’s Annual Meeting of Shareholders (the “Annual Meeting”) to be held on June 21, 2019. Continue reading...
Fir Tree Increases Stake in JR Kyushu to 6.1% and Intends to Make Shareholder Proposals 
NEW YORK / TOKYO – March 22, 2019
Fir Tree Partners (“Fir Tree”) today filed a change report to its previously filed ‘Large Shareholding’ report at the Kanto Local Finance Bureau in Japan, disclosing an increase of its beneficial ownership in Kyushu Railway Company (“JR Kyushu” or “the Company”) (TSE ticker 9142) to 6.1% through common stock. Continue reading...
A Better Way for JR Kyushu 2020

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