Automotive audio equipment maker Foster Electric is formulating a new medium-term business plan in cooperation with an activist investor. The current 3-year medium-term plan will be discontinued, and Axiom Capital, which holds an approximately 25% stake, will play a major role in formulating the new plan.
Foster Electric is working with an activist investor to formulate a medium-term business plan. The current 3-year medium-term plan will be discontinued, and the company plans to determine its future direction in step with its investing shareholder. Axiom Capital's major involvement in the new plan has been disclosed. President and CEO Kishi Kazuhiro (岸 和宏) explained the background to the cooperation and the key points of the new plan.
Axiom Capital holds approximately 25% of Foster Electric's shares and is expected to play a role in promoting management reform. It is unusual in Japan for an activist investor and its investee company to work together on a medium- to long-term strategy, and the coordinated efforts of the two parties have attracted attention. President Kishi explained their resolve to work together and the key points of the specific measures.
Further developments will depend on the timing of the new plan's announcement and the disclosure of specific reform measures. By strengthening coordination between the investee company and its management policy, Foster Electric's ability to execute its growth strategy is now being tested.