RMB Capital Proposes Musashi Dividend Increase and Retirement of Treasury Shares
May 28, 2018 at 12:00 am EDT
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On May May 28, 2019, RMB Capital announced that it has filed shareholder proposals regarding a dividend increase and retirement of treasury shares for the 98th annual general shareholders' meeting at Musashi Co., Ltd which is scheduled to take place in June 2019. RMB Capital stated that the Company holds a large amount of cash and deposits, and RMB asserts that returning more cash to shareholders, rather than accumulating excess capital unnecessarily would serve shareholders’ common interests and moreover, the return of excess capital would improve the Company’s ROE, leading to a further enhancement in corporate value. RMB Capital stated that the Company had been paying a year-end dividend of 20 yen until last year and therefore, this proposal seeking a year-end dividend of 24 yen does not deviate from the amount paid in the past, but is in line with the Company's policy of ‘continuing stable dividends.’ RMB expressed its views that by retiring treasury shares, shareholders can fully enjoy the benefit of share buyback and on the other hand, if such treasury shares were to be sold back to investors through a public offering or third-party placement, it would dilute earnings per share and damage the interests of existing shareholders just as if new shares were to be issued and in order to eliminate such risks it is necessary to retire the treasury shares.
MUSASHI CO., LTD. is primarily engaged in the sale of information, printing and industrial system equipment, financial general and election system equipment, and paper products. The Company operates in four business segments. The Information, Printing and Industrial System Equipment segment provides equipment, materials, information processing service and maintenance of electronic media and microfilm integrated systems, and equipment, materials and maintenance of printing systems, IPS systems, and industrial inspection. The Financial General and Election System Equipment segment provides equipment, related materials and maintenance of currency handling, election and security systems. The Paper and Paper Products segment provides paper for use in printing, publishing, information and business, paperboards for cartons, special paper and paper products. The Real Estate Rental and Leasing segment is engaged in real estate leasing, non-life insurance agency and human resources business.
MUSASHI CO., LTD. 
