Success Rate Of Shareholder Activism On The Rise In Asia by Activist Insights
Shareholder activism has grown steadily in Asia in recent years, becoming a significant presence in several countries. Indeed,15 companies have already been publicly subjected to demands from their shareholders since the beginning of 2016, through April 11.
In 2015, 33 companies were publicly targeted, compared to 20 a year before, and 13 in 2013.
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Asian companies publicly subjected to shareholder demands
Companies headquartered in Japan and China have faced the largest share of activism. Since 2013, public activist demands have been made at 23 companies in Japan. In the same period, public demands have been made at 12 companies headquartered in China (albeit many US-listed).
Proportion of all Asian companies subjected to shareholder activism publicly targeted by US investors
American investors have led the majority of activist campaigns publicly waged in Asia. In 2015, 51% of the companies which faced public activist demands did so from US-based shareholders, a level that has increased slightly in 2016 to date.
Success rate of activist demands in Asia *
The success rate of activism in Asia has increased notably in 2015, rising to 47.8%, from 32.1% a year before. Only four of the 25 activist demands made in 2016 have so far been resolved.
The issues at stake in Asian activist campaigns does not differ much from those at stake in US and European disputes.
Proxy contests and battles to remove directors or executives are by far the most frequent course of action for activists operating in the continent, and share repurchases follow suit.
Public shareholders’ demands at Asian companies **
Size of companies subjected to public shareholder demands
Small-caps are the favorite target for activists operating in Asia, but companies of all sizes face their fair share of public demands.
* Resolved demands where the activist has been at least partially successful.
** The data refer to the number of public demands made by shareholders. A single shareholder can make several demands at the same company across different years.
Countries included in Asia: China, Hong Kong, India, Japan, Malaysia, Singapore, South Korea, Taiwan.
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Since 2012, Activist Insight has provided its diverse range of clients with the most comprehensive information on activist investing worldwide. Regularly quoted in the financial press, Activist Insight is the trusted source for data in this ever-evolving space. Activist Insight offers two great products: Activist Insight Online and Activism Monthly Premium magazine, and counts many of the world’s leading investment banks, law firms, shareholder communications firms and institutional investors as its clients.