Abernathy MacGregor is helping King Street as the New York hedge fund eyes a proxy fight with Japanese industrial giant Toshiba, which has been in a tailspin since its Westinghouse Electric nuclear unit declared bankruptcy in 2017.
King Street, which is one of Toshiba’s largest investors with a 5.4 percent stake, plans to nominate a slate of directors, including co-founder Brian Higgins, to replace the majority of Toshiba’s board.
In a letter to Toshiba CEO Nobuaki Kurumatani, who took over in April, King Street describes its objectives as instlling accountability, improving efficiency, focusing on disciplined capital allocation, maximizing value of assets/businesses and renewing the focus of the corporate portfolio.
“Our goal is return Toshiba to its rightful place as a crown jewel of corporate Japan,” it says.
While King Street credits the directors for doing a commendable job, the hedge fund believes Toshiba needs “a different type of board... to lead its turnaround plan.”
Founded in 1992, King Street is a $20B investment management firm with offices in London, Singapore, Tokyo and Charlottesville.
AbMac’s Shawn Pattison and Will Braun represent King St.
France's Havas owns AbMac.