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July 23, 2025 – nanahoshi Management (UK) Ltd. today announced the launch of a dedicated campaign website – https://pesach-2168.com – focused on improving shareholder value at Pasona Group Co., Ltd. The initiative aims to address key concerns regarding the company’s financial performance adn strategic direction.
Addressing Underperformance and Capital Allocation Concerns
Nanahoshi Management (UK) believes Pasona Group is currently undervalued and presents a significant opportunity for advancement. The campaign website details the core issues identified by the firm, outlining a path towards unlocking greater returns for shareholders. Several key statistics highlight the current situation:
Significant Underperformance: Total shareholder returns for Pasona, when compared to the broader TOPIX index (including dividends) since the Benefit One tender offer agreement, lag behind by a significant 32 percentage points.
Low Valuation: Pasona’s Price-to-Book (PBR) ratio currently stands at a remarkably low 0.6, indicating the market’s diminished confidence in the company’s net asset value. This is particularly concerning given the current average PBR of 1.3 for companies listed on the Tokyo Stock Exchange.
Strong Cash position: The company holds a net cash reserve of approximately ¥68.7 billion, representing 80% of its current market capitalization. This substantial liquidity is,in the firm’s view,not being effectively deployed to maximize shareholder returns.
Questionable Related-Party Transactions: Pasona has engaged in significant donations to related parties, totaling ¥680 million, specifically to the Pasona Professional Graduate School Establishment Planning Foundation.
Nanahoshi Management (UK)’s proposals center around four key areas designed to address the identified shortcomings and drive sustainable growth:
1. Optimized Balance Sheet Management: The firm advocates for a strategic review of Pasona’s balance sheet to eliminate distortions and unlock hidden value. This includes a careful assessment of asset utilization and potential divestitures.
2. Addressing Valuation Discounts: A thorough analysis of the factors contributing to the company’s discounted stock price is crucial. This involves identifying and rectifying issues related to openness, corporate governance, and investor communication.
3. Transparency in Related-Party Transactions: Nanahoshi Management (UK) calls for complete disclosure of all related-party transactions, particularly donations, tied to capital costs. The firm believes opaque dealings erode investor trust and divert resources from core business objectives. Similar scrutiny has been applied to other Japanese corporations, such as Toshiba, where concerns over related-party transactions led to significant shareholder activism.
4. Strategic Review and Capital Efficiency: A complete review of Pasona’s medium-term management plan is necessary to ensure it prioritizes capital efficiency and generates returns exceeding the company’s cost of capital. This includes evaluating the necessity of maintaining a public listing if it hinders long-term value creation.
Re-evaluating Pasona’s Core Purpose
A central tenet of Nanahoshi Management (UK)’s campaign is a fundamental question: what is Pasona’s core purpose, and does maintaining a public listing align wiht achieving that purpose? The firm believes a candid assessment of the company’s strategic direction is essential for maximizing long-term shareholder value.
Stay Informed
For the latest updates on the campaign, Nanahoshi Management (UK) encourages interested parties to add their official LINE account: @nanahoshiuk.
Open the LINE app. Tap “Add Friend” on the Home screen.
Search for “@nanahoshiuk”.
Alternatively, access the LINE registration URL: https://lin.ee/Ck8y0yD
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