Dalton Investments Submits Shareholder Proposal to Elect Director to Shinsei Bank Board

SANTA MONICA, Calif. & TOKYO–(BUSINESS WIRE)–Dalton Investments LLC, a registered investment advisor based in Santa
Monica, California, announced today the submission of a Shareholder
Proposal to elect James Rosenwald, Dalton’s Founder, as an Independent
Director to the Board of Shinsei Bank. Dalton currently owns more than
6% of the outstanding shares of Shinsei Bank. The proposal will be voted
upon at Shinsei’s annual meeting, to be held on June 19, 2019.

“We are long-term shareholders of Shinsei Bank, and have been patient
investors in the stock,” said Mr. Rosenwald. “We believe Shinsei Bank
needs to strengthen its commitment to building value for all
shareholders, especially the taxpayers of Japan, who saved the bank. If
elected to the Board, I intend to work every day to enhance the value of
the shares.

“Our goals are simple: we want to make Shinsei the safest,
best-capitalized large bank in Japan, and to create a financial
foundation that makes possible the repayment of taxpayers in whole and
improves return on equity. The best way to accomplish these goals is by
selling assets, shrinking the company, and using excess capital to buy
back shares.

“While we applaud the recent announcement by the Board to repurchase
shares as a good first step, we feel that the stock buyback needs to
proceed at a much faster pace if the taxpayer is to be repaid in full.
In addition, Shinsei should avoid distracting initiatives such as joint
ventures with other banks, namely Suruga, and instead focus first on its
own balance sheet.

“Until the taxpayer has been repaid, I intend to take a
Director’s Fee of only one yen per year as I believe this would be the
right and honorable policy for non-executive directors. We must work
hard to make the taxpayers whole.”

About Dalton Investments, LLC

Dalton Investments, LLC, is a US-based firm, registered with the United
States Securities and Exchange Commission and the Japanese Ministry of
Finance. It advises institutional clients in North America, Europe and
Asia-Pacific and is headquartered in Santa Monica, California. Several
of Dalton’s Japanese investment team, based at their office in Tokyo,
serve on the boards of publicly-traded firms in Japan as independent
directors.

Contacts

For More Information Contact:
Mickey Mandelbaum or Kris Cole
Prosek
Partners
(212) 279-3115
[email protected]
[email protected]

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