Silchester Demands Extraordinary General Meeting at Medipal
News related to:Medipal Holdings Corporation · 3 min read
LONDON, Oct. 28, 2026 /CourierPR/ -- Silchester International Investors, a UK-based asset management firm, has become the largest shareholder in Medipal Holdings Corporation, owning 26,425,900 shares, which represent 12.9% of the company's issued share capital. Silchester has been invested in Medipal since 2011. On September 2, 2026, Silchester formally demanded, pursuant to Article 297, Paragraph 1 of the Companies Act, that Medipal convene an extraordinary general meeting (EGM) of shareholders. This demand came after Medipal refused to include certain resolutions on the agenda of the company's Annual General Meeting in June 2026.
On September 30, 2026, Silchester submitted a petition to the Tokyo District Court, seeking permission to convene the EGM. Silchester was compelled to take this step because Medipal had not taken any public steps to convene the EGM over the previous four weeks. Medipal disclosed the Petition on the same day. On October 13, 2026, almost six weeks after Silchester's EGM demand, Medipal finally announced that it had set October 31, 2026, as the record date for the EGM. Public notice of the record date would be given on October 16, 2026. To date, Medipal has not stated that it will hold the EGM.
On October 23, 2026, Medipal announced it would repurchase up to 4,000,000 shares at a total acquisition cost of up to JPY 10 billion. All treasury shares acquired in this buyback would be cancelled. Silchester noted that Medipal is overstating the number of shares it is likely to acquire. At Medipal's closing share price on October 22, 2026, (JPY 3,170), approximately 3,155,000 shares can be purchased. Medipal also failed to announce the cancellation of the 11,276,811 shares it held in treasury.
In its EGM demand, Silchester pointed out that Medipal retains substantial excess capital while its capital efficiency remains low. Despite the buyback, Medipal's capital structure remains far from where it should be. On the same day as the buyback announcement, Medipal raised its forecast net income for the fiscal year ending March 31, 2027, from JPY 43.0 billion to JPY 53.0 billion, due to, among other things, gains on the sale of cross-shareholdings. The buyback is capped at only JPY 10 billion, the same amount as this increase. Medipal's dividend forecast remains unchanged at JPY 88 per share. The Board continues to hoard shareholder capital.
Silchester remains committed to seeking permission from the Tokyo District Court to convene the EGM. The proceedings before the Court are ongoing. Silchester is putting arrangements in place to hold the EGM. Silchester hopes that details of the EGM can be announced on or around November 16, 2026. Silchester expects to issue one or more press releases when the details of the EGM are finalised. Silchester looks forward to gaining the support of Medipal shareholders. A vote in favour of Silchester's proposals will provide the Board of Directors with guidance on Medipal's future capital allocation and dividend distribution policies.
Silchester has invested in Japanese equity securities since 1995. Silchester is the appointed investment manager for several large commingled funds, one of which is The Silchester International Investors International Value Equity Trust. The Silchester International Investors International Value Equity Trust holds more than 3% of the total voting rights of Medipal shareholders and has done so continuously for over six calendar months. The Northern Trust Company acts as the custodian for this commingled fund, holding the shares for this commingled fund in a nominee account called The Northern Trust Company AVFC Re: Silchester International Investors International Value Equity Trust. The Northern Trust Company has provided Silchester with a power of attorney, granting Silchester the authority, as investment manager, to make the EGM demands. The Northern Trust Company is not otherwise involved with the EGM demands.