Tokyu Hotels

"After I started investing and became a major shareholder, I met with the president of Tokyu Hotels and had several meetings at the Akasaka Tokyu Hotel. I was seriously considering acquiring all the shares of Tokyu Hotels both through additional fundraising with the fund and personal borrowing, aiming to delist it and make it a private company of the fund, and so I proposed this. When the fund’s shareholding approached the ownership percentage of Tokyu Railways, the president of Tokyu Railways then requested to "have a talk." It seemed that the president of Tokyu Hotels was a senior executive from Tokyu Railways, and was unable to make major management decisions."

"When the fund started, my consulting work for the Tokyu Group had ended. This time, upon reviewing the Tokyu Group as an investment case, Tokyu Hotels, a subsidiary of the group, turned out to be very appealing to the fund. Therefore, after making a formal proposal to Tokyu Railways, I began buying shares of Tokyu Hotels. At that time, Tokyu Hotels had a market capitalization of about ten billion yen, but the real estate it owned in Akasaka alone was worth about five hundred billion yen in market value terms. Because of the presence of a major shareholder, Tokyu Railways, which owned 20% of the shares, the liquidity of the shares was low and the stock price was left undervalued."