Harvard wasn’t pressured over Toshiba, former Japan adviser says

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BOSTON/TOKYO — A former Japanese authorities adviser mentioned he didn’t put strain on Harvard College’s endowment fund to affect its voting at Toshiba Corp’s contested shareholder assembly final 12 months, and that the fund ought to “set the file straight.”

Hiromichi Mizuno, till lately an adviser to the Ministry of Financial system, Commerce and Business, was recognized by a shareholder-commissioned investigation this month as an vital determine in what it mentioned was administration collusion with METI to dam the affect of international shareholders.

Mizuno advised Reuters he had volunteered to METI officers to talk with Harvard Administration Co as he was about to start out a fellowship on the college final 12 months.

Mizuno, a member of the board of U.S. electrical car maker Tesla Inc, mentioned he had mentioned potential dangers for the Harvard fund, referred to as HMC, over voting at Toshiba. The conglomerate’s prime shareholder, activist hedge fund Effissimo Capital Administration, was pushing for board seats.

HMC was additionally an investor in Singapore-based Effissimo, sources beforehand advised Reuters.

Mizuno made clear to HMC that he was not representing the Japanese authorities, he mentioned.

“I’ve no real interest in whichever method you vote,” Mizuno mentioned he advised the endowment’s leaders.

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Mizuno’s feedback to Reuters in an interview late on Monday had been his first public remarks about Toshiba for the reason that investigation discovered administration colluded with METI to dam the affect of Effissimo, HMC and different international shareholders, and offered new particulars in regards to the talks. He had beforehand advised the Monetary Instances he was not representing the Japanese authorities.

Mizuno’s account additionally casts new gentle on occasions at Toshiba. The incidents detailed within the investigation have renewed concern about Japan’s company governance and openness to international shareholders, and seem to chop towards the federal government’s lengthy drive to win extra international funding.

A spokesperson for HMC declined to remark for this text.

A senior METI official with direct data of the matter, talking on situation of anonymity, backed Mizuno’s account and mentioned it was not mirrored within the investigation.

Toshiba declined to remark.

The unbiased investigation discovered Mizuno’s function compromised the vote on the July 2020 annual basic assembly after HMC, which held a greater than 4% stake, abstained from voting.

It was not clear how HMC had deliberate to vote on the assembly.

Mizuno advised Reuters he tried to maintain his dealings with Harvard pleasant, and has requested the fund for some clarifications “to set the file straight.”

Mizuno is the previous chief funding officer of Japan’s $1.61-trillion pension fund. He resigned as a particular adviser to METI after being named a United Nations particular envoy, the federal government mentioned in January.

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‘HIGHLY INAPPROPRIATE’

A few of Mizuno’s account stood in distinction with the investigation, which quotes a HMC letter stating the endowment obtained an unwelcome request from an individual — apparently Mizuno — earlier than the shareholder assembly and “discovered the change to be extremely inappropriate in each content material and timing.”

The report mentioned even when Mizuno spoke as a personal citizen, shareholders would perceive his authorities affect.

METI has regulatory energy over Toshiba’s international shareholders as a result of the corporate is taken into account a strategic asset, making nuclear and protection tools.

Mizuno advised Reuters in a follow-up message on Tuesday that he served as a channel for messages from HMC to METI and Toshiba after the fund turned annoyed with the corporate, which has been dogged by accounting and governance points and a weak share worth.

Mizuno mentioned the leaders of the $41-billion endowment, Chief Govt N.P. “Narv” Narvekar and Chief Funding Officer Rick Slocum, welcomed his enter.

HMC didn’t make Narvekar or Slocum obtainable for an interview.

Effissimo had nominated three candidates to Toshiba’s board on the July 31 assembly, all of whom had been opposed by administration. None had been elected though one obtained 44% of the vote.

Mizuno mentioned he wished HMC to know the potential penalties of the vote, on condition that new guidelines on international possession in Japan might put scrutiny on HMC’s ties to Effissimo.

Sources beforehand advised Reuters that Mizuno voiced the potential for a regulatory investigation ought to HMC vote towards the curiosity of Toshiba’s administration. Mizuno advised Reuters he had wished to assist HMC keep away from surprises.

“I made it clear I used to be solely making an attempt to provide sufficient data” for the fund to know how issues labored in Japan, he mentioned. ($1 = 110.3700 yen) (Reporting by Ross Kerber in Boston and Makiko Yamazaki in Tokyo; Modifying by David Dolan and Timothy Heritage)