An independent Tokyo Radiator

OUR SHAREHOLDER PROPOSALS          Our Presentation


Dear fellow shareholders of Tokyo Radiator,

AVI has been a shareholder of Tokyo Radiator for nearly four years. We have been in communication with Tokyo Radiator to increase its corporate value, especially to resolve conflicts of interests between KKR-owned Marelli, Tokyo Radiator’s controlling shareholder, and minority shareholders.

It goes without saying that KKR is fully aware of Tokyo Radiator’s listed subsidiary status and, by maintaining the structure and having a disproportionate influence, is at fault for the failure to protect minority shareholders. The President of Tokyo Radiator is assigned from KKR-owned Marelli, raising questions about whose interests are more important for Tokyo Radiator—those of its controlling shareholder or those of general shareholders.

Tokyo Radiator has idle cash of ¥9.9bn, which exceeds its market capitalisation. Over half of the ¥9.9bn is inappropriately deposited with its controlling shareholder Marelli.  AVI has made shareholder proposals to strengthen the protection of minority shareholders and address the issues caused by its “listed subsidiary” status

  • Shareholder Proposal 1: Return of ¥5.5bn cash held on deposit to parent company Marelli, and return it to shareholders as a special dividend
  • Shareholder Proposal 2: Transition to a company with an audit and supervisory committee to strengthen the supervisory function of the board of directors
  • Shareholder Proposal 3: Establishment of a nomination committee and a compensation committee, the majority of members to be comprised of outside directors
  • Shareholder Proposal 4: Introduction of restricted stock-based compensation system for directors (excluding outside directors)

We hope that our fellow shareholders will support these proposals. Other shareholders who share our views are encouraged to communicate their views.

18th May 2021

Joe Bauernfreund
CEO & CIO, Asset Value Investors

AVI Japan Opportunity Trust

Key facts

AVI Japan Opportunity Trust p.l.c is referred to as ‘AJOT’ throughout the website. AJOT’s investment managers, Asset Value Investors are referred to as ‘AVI’

AJOT currently conducts its affairs so that its shares can be recommended by Independent Financial Advisers (“IFAs”) in the UK to ordinary retail investors in accordance with the Financial Conduct Authority (“FCA”) rules in relation to non-mainstream investment products and intends to continue to do so. The shares are excluded from the FCA’s restrictions which apply to non-mainstream investment products because they are shares in an authorised investment trust. © AVI Japan Opportunity Trust plc. 2018 Registered in England No: 11487703. An investment company under Section 833 of the Companies Act 2006. Registered Office: Beaufort House, 51 New North Road, Exeter, EX4 4EP. Managed by Asset Value Investors Ltd. which is authorised and regulated by the Financial Conduct Authority. Past performance should not be seen as an indication of future performance. The price of investments and the income may fall as well as rise and investors may not get back the full amount invested. AJOT may use gearing techniques (leverage) which will exaggerate market movements both down and up which could mean sudden and large falls in market value. Please refer to the Key Features Document for further details of the risks affecting your investment. Performance figures are cumulative and based on Price total return and do not include Plan charges. For more information, please call 03458 500181. Tax treatment depends on the individual circumstances and may be subject to change in the future. Asset Value Investors Ltd do not offer Innovative Finance ISAs.


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