3D Investment Partners Issues Open Letter to Sapporo’s Board of Directors Reiterating Concerns Regarding the Company’s Severe Lack of Capital Discipline Amid Repeated Large-Scale M&A Impairments
Summary
Request for Public Responses to Our Questions We believe that Sapporo’s current Board, particularly its Audit & Supervisory Committee members, lack the expertise and capital discipline required to maximize the sale price of the Company’s real estate assets and to appropriately reinvest the proceeds. As one of Sapporo’s largest investors, we believe we have a responsibility to work on behalf of other shareholders, with whom our interests are aligned, to ensure that the Board properly addresses this critical issue of capital discipline. However, we believe the current Board, particularly the Audit & Supervisory Committee members, lacks the necessary expertise to maximize the sale price of Sapporo’s real estate assets and appropriately reinvest the proceeds. • In light of Sapporo’s upcoming multi-billion-yen real estate divestiture and capital reallocation, what additional measures will the Audit & Supervisory Committee implement to ensure proper oversight, considering past failures? • How can shareholders be assured that the Audit & Supervisory Committee will effectively fulfill its oversight function and prevent the Board from repeating past capital allocation failures?