Palliser Capital Responds to Media Article Regarding Investment in Keisei Electric Railway

October 17, 2023 at 13:55 PM EDT

Palliser releases presentation made to 13D Monitor Conference: “Keisei Electric Railway – a Unique Opportunity to Unlock Value and Catalyze Growth
Presentation confirms Palliser’s 1.6% stake, and an extensive process of collaborative engagement with Keisei’s board of directors since August 2021
Palliser “Three-Step Plan” intended to unlock $4.5BN of latent value, equivalent to 76% potential upside in Keisei stock
Plan includes right-sizing Keisei’s stake in Oriental Land to eliminate value-sapping accounting distortion and enable ongoing value maximization

Palliser Capital (“Palliser”), the eighth largest shareholder of Keisei Electric Railway Co., Ltd. (9009 JT) (“Keisei”) with a stake of 1.6%, releases details of the presentation given to attendees of 13D Monitor’s 2023 Active-Passive Investor Summit in New York. Palliser’s presentation outlines a comprehensive set of proposals intended to address Keisei’s persistent undervaluation by unlocking $4.5 billion of latent value and enacting a suite of capital allocation, governance and investor relations reforms.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20231017540912/en/

Palliser’s “Three-Step Plan” includes proposals to:

Reduce Keisei’s stake in Oriental Land Co., Ltd., in order to resolve the mismatch between its reported value on Keisei’s balance sheet and its actual value
Adopt a capital allocation framework encompassing a focused investment strategy and enhanced shareholder return policy, in order to ensure optimal allocation of Keisei’s existing and future capital, in line with Tokyo Stock Exchange initiatives
Institute both best-in-class corporate governance, including increased board-level diversity, enhanced management alignment structures and the removal of advisory/cross-board appointments and improved investor communication policies

James Smith, Palliser’s Founder and CIO, said:

“Our team has been delighted to engage extensively with the board and management of Keisei over such a long period of time. We look forward to making further progress in our discussions with the company and to the achievement of an ‘all-around win’ outcome for all of Keisei’s stakeholders.”

Full details of the Presentation are outlined in the accompanying attachment.

About Palliser Capital

Palliser Capital is a global multi-strategy fund based in London. Our value-oriented investment philosophy is applied to a broad range of opportunities across the capital structure with a focus on situations where positive change and value enhancement can be achieved through thoughtful, constructive and long-term engagement with companies and across a range of different stakeholder groups. Palliser Capital is the eighth largest Keisei shareholder with a stake of 1.6%.