Oasis Statement on Fujitec’s Showing Its True Colors: Fujitec’s President Okada Publicly Indicates That Uchiyama May be Reappointed as President

Rhea-AI Summary

Oasis Management, which holds over 16.5% of Fujitec Co., Ltd. (6406 JT), has raised concerns over the company's governance following comments made by President Okada. He suggested that Chairman Uchiyama could return as president during the next AGM, indicating ongoing familial control over Fujitec. Oasis argues that Fujitec's rejection of its nominated directors is driven by a desire to maintain Uchiyama's influence rather than improve governance. The firm urges shareholders to support its proposals to ensure equitable treatment and prevent potential abuses by Uchiyama.

Positive

• Oasis holds over 16.5% of Fujitec, indicating significant shareholder interest.
• Oasis's proposals are supported by ISS, suggesting credibility.

Negative

• Fujitec's board appears to prioritize Uchiyama's control over shareholder interests.
• Uchiyama's potential return raises concerns about governance and management quality.

TOKYO & HONG KONG--(BUSINESS WIRE)-- Oasis Management Company Ltd. (“Oasis”) is the manager to funds that beneficially own over 16.5% of elevator manufacturer and servicing company Fujitec Co., Ltd. (6406 JT) (“Fujitec” or the “Company”).

In an interview with Sankei, published today,¹ President Okada of Fujitec Co., Ltd. (6406 JT) (“Fujitec” or the “Company”) openly indicates that there is a possibility that “Chairman of the Company” Uchiyama may be back as Fujitec’s President at the next AGM. He is quoted as saying:

“The board of directors will make decisions, including the reappointment of Uchiyama as president, pending the conclusion of the third-party committee.”

This is an astonishing admission and confirms that the Uchiyama family continues to maintain control over Fujitec. Fujitec is showing itself to be entirely ignorant of shareholders opinions. As Oasis Management Company Ltd. (“Oasis”) has shown in its presentations and other materials, available on www.protectfujitec.com, the results of the biased third-party investigation committee are a foregone conclusion to clear Uchiyama’s name of any wrongdoing.

Shareholders must not accept Fujitec’s lies. Here is the truth:

• Fujitec is rejecting Oasis nominees because it wants Uchiyama to maintain management control and not for any other reason.
• Oasis does not want management control over Fujitec, full stop – rather, as we have repeatedly said and demonstrated, we just want Fujitec to be independent of the Uchiyama family and to treat all shareholders equally.
• Fujitec does not want to improve corporate governance; it is just wants to cement Uchiyama’s control over the company.
• Uchiyama is far more involved in management claims, and their public statement shows that Uchiyama’s return to a formal leadership position at Fujitec is paramount to them.
• Fujitec’s nominee directors Jiro Iwasaki and Michi Kaifu are not independent, as the future return of Uchiyama would have been cleared with them before being nominated.
• Fujitec’s board of directors is again prioritizing Uchiyama above all other stakeholders and does not care about shareholder opposition to Uchiyama.

Uchiyama only has his position due to nepotism, not merit—his tenure over Fujitec saw a proliferation of poor governance and losing ground to competitors.

Fujitec’s current board of directors, both internal and external, are fully controlled by Uchiyama and only a full change of the independent directors of Fujitec will ensure that Fujitec is no longer controlled by the Uchiyama family.

As Fujitec’s own statements reveal, voting for Fujitec is a vote to bring Uchiyama back as President.

Shareholders must vote for the Oasis shareholder proposals, as supported in full by ISS, in order to be treated equally and stop Uchiyama abusing the Company for his own benefit.

Vote AGAINST Agenda 1 (Fujitec’s Proposal)

Vote FOR Agenda 2-7 (Oasis’s Proposals)

Now is the time to change Fujitec.

About Oasis

Oasis Management Company Ltd. manages private investment funds focused on opportunities in a wide array of asset classes across countries and sectors. Oasis was founded in 2002 by Seth H. Fischer, who leads the firm as its Chief Investment Officer. More information about Oasis is available at https://oasiscm.com. Oasis has adopted the Japan FSA’s “Principles for Responsible Institutional Investors” (a/k/a Japan Stewardship Code) and in line with those principles, Oasis monitors and engages with our investee companies.

Important Disclaimer

The information contained in this press release (referred to as the "Document") is an information resource for shareholders in Fujitec offered by Oasis, the investment manager to private funds that are shareholders of Fujitec (the "Oasis Funds").

This material is not intended to solicit voting in favor of Oasis’ proposals, to which rules concerning solicitation of proxies applies.

Oasis is not in any way soliciting or requesting shareholders to jointly exercise their voting rights together with Oasis. Shareholders that have an agreement to jointly exercise their voting rights are regarded as “Joint Holders” under the Japanese large shareholding disclosure rules, and they must file notification of their aggregate share ownership with the relevant Japanese authority for public disclosure.

Oasis disclaims its intention to be treated as a Joint Holder with other shareholders under the Japanese Financial Instruments and Exchange Act (“FIEA) by virtue of its act to express its view or opinion or other activities to engage in dialogue with other shareholders in or through this Document or any website.

This statement and related materials exclusively represents the opinions, interpretations, and estimates of Oasis in relation to the upcoming EGM. Oasis is expressing those opinions solely in its capacity as an investment advisor to the Oasis Funds.

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¹ https://www.sankei.com/article/20230217-DBWCFEEPN5KBNCDH7CKFDNTH6E/

View source version on businesswire.com: https://www.businesswire.com/news/home/20230217005282/en/

Taylor Hall

media@oasiscm.com

Ashton Consulting Limited

Tadashi Shiokai and Yuzo Iwaya

Phone: +81 03-5425-7220

Email: oasisac@ashton.jp

Source: Oasis Management Company Ltd.

FAQ

What is Oasis Management's stake in Fujitec Co., Ltd. (FJTCY)?

Oasis Management owns over 16.5% of Fujitec Co., Ltd. (FJTCY), highlighting significant shareholder influence.

What did President Okada say about Uchiyama's potential return to Fujitec?

President Okada indicated there is a possibility that Uchiyama may be reappointed as president at the next AGM.

Why is Oasis opposing Fujitec's current management?

Oasis opposes Fujitec's management due to concerns over Uchiyama's control and the lack of responsiveness to shareholder opinions.

What actions does Oasis suggest shareholders take regarding Fujitec?

Oasis urges shareholders to vote for its proposals and against Fujitec's agenda to ensure fair treatment.

How is the governance issue at Fujitec affecting its shareholders?

The governance issue is causing concern among shareholders about Uchiyama's influence and potential mismanagement.