In today’s briefing:
- Softbank (9984 JP) – This Time, It’s Chime
- More Companies Submitted Shareholder Proposals, but All Were Rejected. Where Is the Problem?
Softbank (9984 JP) – This Time, It’s Chime
- US fintech Chime, another high-profile fintech in Softbank’s Vision Fund 2 portfolio, sees its secondary market valuation in the private market fall by nearly 50% on a year-to-date basis
- Chime had been planning to IPO in 1H 2022, with its IPO valuation estimated at close to USD40bn; poor market conditions have led to the IPO being shelved
- Chime’s reduced valuation is another hit to Softbank’s portfolio, which has yet to feature a recent “down round”, and which we believe negatively impacts its Vision Fund 2 in particular
More Companies Submitted Shareholder Proposals, but All Were Rejected. Where Is the Problem?
- Even though shareholder proposals have increased, only 77 of the more than 2,000 companies with a fiscal year ending in March have submitted shareholder proposals, or only a few percent.
- Japanese institutional investors begins to examine the content of proposals and exercise their voting rights. It’s serious matter that until now they haven’t exercised them in accordance with Stewardship Code.
- It will still take substantial amount of time to move away from a shareholder meeting protected by a cross-shareholding structure and toward a shareholder meeting that promotes dialogue with shareholders.
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