Japan: Activist fund criticizes Sapporo after overseas ‘acquisition failures’

3D Investment Partners has criticised Sapporo Holdings Ltd over its execution of overseas acquisitions, expressing concerns about the risk that the Japanese brewer may continue to “misallocate capital” leading to further “destruction of corporate value”, The Edge reported on February 18.

The Singapore-based investment fund censured the management over “impairment losses on all of its overseas alcoholic beverage acquisitions”, and questioned the responsibility of the board of directors, in a letter seen by Bloomberg.

The letter on February 18 was sent to Sapporo’s board of directors and specifically railed against the 13.9 billion (US$92 million or RM407.16 million) impairment loss that Sapporo booked in January 2025 for Stone Brewing, a US craft brewer that it acquired in 2022. The letter said the company had acquired the US brewer at a price-to-book ratio of 3.4 times, despite Stone Brewing’s declining sales and unprofitable operations.

On February 17, Sapporo announced that the board had voted against appointing former Toshiba Corp outside director Paul Brough, whose name 3D had proposed.

According to data compiled by Bloomberg, 3D is the largest shareholder, owning more than 19% of Sapporo shares.

Sapporo said last week it continues to explore “large-scale” merger and acquisition (M&A) deals to grow its alcoholic beverage business using funds raised from real estate business.

3D said that as a major shareholder it had the responsibility to ensure the board addresses the key issue of capital discipline.

Spokespeople for Sapporo and 3D weren’t immediately available to comment.

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