RMB Capital ("RMB"), a Chicago-based independent investment advisory firm, is a long-term shareholder of Nishikawa Rubber Industry Co., Ltd. (5161 JP, "Nishikawa") and owns approximately 2% of the firm’s total outstanding shares.
RMB filed a shareholder proposal (Proposal #6) for Nishikawa’s 71st annual general shareholders meeting, scheduled on June 25, 2020, to buyback common stock of 88,000 shares, maximum 100 million yen. Even with the uncertainty due to the COVID-19 pandemic, Nishikawa holds 30.9 billion yen in cash and 14.3 billion in marketable securities on its balance sheet. RMB believes the management should start a buyback program and send a strong message to the stock market that Nishikawa remains a healthy business despite its stock price staying at a historically low level.
In addition, RMB opposes the continuation of the "poison pill" proposed by the management (item #5).
About RMB Capital
Headquartered in Chicago, RMB Capital is an independent investment advisory firm that serves high-net-worth individuals and families as well as institutional investors. Its businesses include wealth management, family office services, asset management, and retirement plan consulting. Its asset management business specializes in long-term, concentrated, active investing strategies with coverage that spans the market-cap spectrum and the globe. To learn more about RMB, visit https://rmbcapital.com.