Top shareholder makes tough proposal to Nippon Paint

January 21, 2018

Osaka- Major Singaporean paint maker Wuthelam has proposed that people related to the group account for a majority of members of the board of Japan's Nippon Paint Holdings Co. <4612>, it was learned Saturday.

Wuthelam is the top shareholder of Nippon Paint, based in the western Japan city of Osaka, with an equity stake of 39 pct.

The proposal will be on the agenda at Nippon Paint's general shareholders meeting in March. With the Nippon Paint management team opposing the proposal, the issue could develop into a proxy fight, informed sources said.

Currently, Goh Hup Jin, an executive of Wuthelam, is the only Nippon Paint board member from the Singaporean group. The board currently comprises seven directors.

Wuthelam recommended five more people related to the group as outside board member candidates so that a total of six people, including Goh, will sit on the board of the Japanese company.

Wuthelam made the proposal in order to maximize Nippon Paint's shareholder value, according to sources familiar with the matter.

Nippon Paint's articles of incorporation sets the ceiling on the number of its board members at 10.

A person related to Nippon Paint said, "I can't comment (on Wuthelam's proposal) at this moment." Jiji Press