This report summarises recent shareholder disclosure filings in Japanese listed companies by activist and actively managed funds.

Air Water shares jumped 8.1% today (19 May) after Murakami-linked funds disclosed a 5.86% stake in the JPY 564.5bn (USD 3.5bn) industrial gas chemicals and medical equipment supplier. Before that, the stock had dropped 10.7% since an accounting probe commenced in October 2025.

Air Water has not released its 3Q26 and FY26 financial reports due to the probe, which uncovered significant governance and internal control weaknesses. It identified improperly deferred losses at multiple consolidated subsidiaries and formed a special committee to conduct a group-wide review. This resulted in retroactive corrections in 1H26 and 1H25 results.

Murakami-linked funds, now Air Water’s second largest shareholder after Sumitomo Mitsui Financial Group, suggested the possibility of an MBO, alongside potential dividend increase and share buyback proposals.

Air Water is trading at 7.1x EV/EBITDA, underperforming gas and chemical producing peers Nippon Sanso Holdings (11.2x) and Mitsubishi Gas Chemical (13.6x). This could plausibly lend itself to an MBO scenario.

Silchester International Investors increased its stake in industrial pigments and paints producer Kansai Paint to 6.17%, as disclosed on 15 May. The filing follows Kansai Paint’s 2025 earnings release on 11 May, where it announced annual dividends of JPY 110 per share – more than double the previous year’s level despite a 17% decline in attributable earnings.

After a brief uptick following Silchester’s initial 5.05% stake disclosure on 1 April, Kansai Paint shares have since edged down 1.9%, implying a market capitalisation of JPY 409.3bn (USD 2.6bn).

Kansai Paint is trading at 7.7x EV/TTM EBITDA, slightly below the median 8.2x EBITDA multiple for peers Nippon Paint Holdings, Chugoku Marine Paints and SK Kaken.

Meanwhile, Ariake Capital reinforced its positions in five Japanese regional lenders: 6.48% stake in Shiga Bank, 10.93% in Aichi Financial Group, 5.94% in Hyakugo Bank, 10.8% in Senshu Ikeda Holdings and 8.57% in Ogaki Kyoritsu Bank. The moves look to be riding on the growing consolidation momentum across Japan’s regional banking sector.

Notably, shares in Ogaki Kyoritsu Bank, Hyakugo Bank and Aichi Financial Group have surged roughly 200% over the past year. The Flash flagged in January that the Mie-based lender holds JPY 236.15bn (USD 1.49bn) in strategic cross‑shareholdings, nearly half of its latest market value of JPY 496.3bn (USD 3.1bn).

In other news, Oasis has raised its position in Comsys Holdings to 6.32%. The activist proposed to appoint an outside director at the Tokyo-based telecommunications construction and engineering group’s 26 June AGM. Silchester also sits on Comsys’ register with 5.27%.

Oasis also slightly lifted its stake in JPY 3.0trn (USD 19.0bn) market cap motor producer Nidec to 6.78%, where it has suggested the possibility of going private in an interview.

Dalton has lifted its stake in logistics company Senko Group to 11.91%, where it also lodged shareholder proposals on director candidate and an amendment to the company’s articles of incorporation.

Wacom and Tokyo Steel also received shareholder proposals from Asset Value Investors and Oasis, respectively, for this year’s AGM season.