Oasis Management Company Ltd. is the manager to private funds (together with the manager, collectively “Oasis”) that own shares of Tsuruha Holdings Inc. (“Tsuruha” or the “Company”). As detailed below, today Oasis has entered into an agreement with AEON Co., Ltd. (“Aeon”) for the sale (the “Sale”) of the approximately 13.6% stake in Tsuruha shares that Oasis owns.

Oasis has actively engaged with Tsuruha since 2022 to enhance Tsuruha’s corporate value in accordance with the Japan Stewardship Code. Over this period, Oasis has advanced multiple proposals to improve Tsuruha through private meetings, letters, public campaigns, and shareholder proposals. These proposals, based on detailed analysis, included recommendations to consolidate with a leading drugstore, enhance governance and profitability, improve customer experience and more.

Over the course of our engagement, Tsuruha has implemented some of these suggestions, which has resulted in the enhancement of Tsuruha’s corporate and shareholder value; however, Tsuruha has failed to demonstrate any progress on consolidation, which Oasis believes to be the Company’s most important management issue. Oasis believes industry consolidation can increase the selection, service and price that drugstores provide to customers and benefits all stakeholders.

Under these circumstances, Oasis has come to an agreement with Aeon on the Sale of the Tsuruha shares that Oasis owns. Aeon owns Welcia Holdings Co., Ltd., Japan’s largest drugstore chain, and has a track record of leading drugstore consolidation in Japan. Oasis believes that the Sale of the Tsuruha shares it owns to Aeon will not only contribute to the enhancement of Tsuruha’s corporate and shareholder value but also beneficial for the wider society.

About Oasis

Oasis Management Company Ltd. manages private investment funds focused on opportunities in a wide array of asset classes across countries and sectors. Oasis was founded in 2002 by Seth H. Fischer, who leads the firm as its Chief Investment Officer. More information about Oasis is available at https://oasiscm.com. Oasis has adopted the Japan FSA’s “Principles for Responsible Institutional Investors” (a/k/a Japan Stewardship Code) and in line with those principles, Oasis monitors and engages with our investee companies.

Disclaimer

This press release is not intended to solicit or seek shareholders’ agreements to jointly exercise voting rights with Oasis. Shareholders that have an agreement to jointly exercise their voting rights are regarded as Joint Holders under the Japanese large shareholding disclosure rules and they must file notification of their aggregate share ownership with the relevant Japanese authority for public disclosure under the Financial Instruments and Exchange Act. Oasis does not intend to be subjected to such notification requirement. The press release exclusively represents the opinions, interpretations, and estimates of Oasis.

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