Japan's Inui Global Logistics is calling on its leading shareholder, Alphaleo Holdings, to reveal who is behind it and why it has made such a huge investment in the company.
Alphaleo has built up a 30% stake in the Tokyo-listed bulker, real-estate and warehouse company but has been vocal in its criticism of the management and earlier called for the board to be replaced.
The relationship between the two companies hit a low last month when Alphaleo released a no-holds-barred video on its website outlining its grievances against the management and alleging their failings have run up huge losses. It is now calling for an end to cross-shareholding between Inui shareholders.
Very little is known of the investor, or who is behind the firm. Alphaleo's website offers few details, other than its long running spat with Inui management and its address, a short distance from Inui’s head office.
Inui management has laid out a series of questions it is now putting to Alphaleo that it says must be answered in order for a “constructive dialogue” to be built between management and its leading shareholder.
The move comes in response to a letter from Inui employees sent to management expressing their concerns over Alphaleo’s stance toward the company.
“Alphaleo’s behaviour, from the view point of people who work for Inui and its related companies, may not be illegal but we think it is unusual,” the employees said in a letter to management.
'Unease' among employees
The employees said that the call for the removal of president Yasuyuki Inui in the middle of his term had created a sense of “unease” among workers.
Top of the list of Inui's requests is for full disclosure from Alphaleo on its related companies, including the names of executives and equity relationships.
Management have also asked for an explanation on the intention behind the Inui share acquisition, and its strategy as an institutional investor, including its future plans for its Inui shares.
Inui management has said that despite Alphaleo's criticisms of the company, and its executives, the outfit had not offered an alternative management plan. So Inui has asked Alphaleo to explain its management and financial ideas for the company, including the executive candidates it believes can run Inui successfully.
Inui management has given Alphaleo 30 days to answer its questions.
