Fuji Media Holdings plans management overhaul and capital allocation improvement; shares surge
Investing.com -- Fuji Media Holdings Inc., a prominent Japanese broadcaster, has announced plans to revamp its management and enhance its capital allocation, a move that resulted in a significant uptick in the company’s shares.
On Friday, the company’s shares surged by as much as 6.1% in Tokyo, marking the most substantial intraday gain in over a month.
The company’s announcement, made during a briefing on Thursday, included the resignation of its influential former chairman and executive management adviser, Hisashi Hieda, who is 87 years old. The company also plans to evaluate its asset holdings, which include strategic equity and extensive real estate, and improve the way it allocates capital.
This decision comes after Fuji Media faced increasing pressure to overhaul its management following its handling of a sexual harassment case that resulted in sponsors withdrawing their advertisements.
Rising Sun Management, an adviser to the Nippon Active Value Fund, had called for Hieda’s resignation. Rheos Capital Works, which became a significant shareholder earlier this year, urged the company to bring in younger talent to the board.
In addition to these changes, Fuji Media also plans to reduce the size of its board from 17 to 11 members, with the majority of the members being outside directors. This is part of the company’s larger strategy to improve its governance and management structures.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
