Singapore-based 3D Investment Partners has urged other shareholders in Nippon Steel to vote against reappointing its president and vice chairman, both of whom have championed a drawn-out U.S. takeover that threatens “irreversible” value destruction.
Nippon Steel’s large-scale capital investment plan that is estimated to reach ¥10 trillion ($69 billion) “significantly” exceeds the company’s market value, thereby “heightening the risk of irreversible damage to corporate value,” 3D said in a statement ahead of the steelmaker’s June 24 annual general shareholder meeting. The steelmaker’s market value is about ¥3 trillion on Tuesday, compiled data show.
The Tokyo-based company’s investment plan includes the acquisition of United States Steel, additional investments in U.S. Steel, and de-carbonization initiatives. Nippon Steel operates “with a capital allocation policy that lacks both transparency and discipline,” 3D said.
