Activist Investor Oasis Management Stake in Ain Holdings

Shares of Ain Holdings saw a significant increase after news broke that Hong Kong-based activist investor Oasis Management had acquired a 9.6% stake in the Japanese pharmacy operator.

Share Price Surges

The shares surged by 15% to reach a limit high of 5,246 yen on Wednesday morning, following the disclosure of Oasis Management’s investment.

Strategic Moves

Oasis Management revealed in a regulatory filing that they now owned 3.4 million shares in Ain Holdings, with the acquisition of an additional 1.6 million shares on Monday. The activist investor has hinted at making substantial proposals to the company to protect shareholder value.

Positive Projections

Ain Holdings has forecasted an 8.3% increase in net profit, reaching 10.00 billion yen ($66.6 million) for the fiscal year ending in April. This projected growth is primarily fueled by the recovery of customer numbers and robust sales of cosmetics. The company anticipates a revenue growth of 8.8%, totaling Y390.26 billion for the fiscal year.

Previous Business Deal

In a strategic business move in February, Oasis Management agreed to divest a 14% stake in drugstore operator Tsuruha Holdings for Y102.3 billion to Aeon Co. This divestment aimed to facilitate Aeon Co.’s merger between Tsuruha and Welcia Holdings, consolidating its position in the Japanese market.

Forward Looking Approach

Oasis Management expressed confidence in Aeon Co.’s ability to lead drugstore consolidation in Japan and believed that the stake sale would enhance Tsuruha’s corporate value.