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Palliser Capital Publishes Value Enhancement Plan for Toyo Tires

1. Palliser Capital emphasizes Toyo's significant undervaluation compared to peers. 2. Palliser proposes changes for Toyo to achieve over 45% increase for shareholders. 3. Palliser's enhancement plan includes aligning management incentives with shareholder interests. 4. The plan also suggests a review of strategic options, including potential privatization.

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FAQ

Why Bullish?

The call for improved governance and performance targets suggests positive future stock price movements. Historical examples, like other companies enhancing shareholder value through active management engagement, support this expectation.

How important is it?

Palliser's actions and proposed enhancements are likely to impact Toyo’s operational efficiency and market perception significantly.

Why Short Term?

Immediate shareholder interest and public proposal can lead to short-term stock price movements. Similar past instances have seen swift market reactions to shareholder engagements.

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5105 JTMitsubishi
LONDON--(BUSINESS WIRE)--Palliser Capital (“Palliser”), a significant shareholder in Toyo Tires (“Toyo”) (5105 JT), today published a comprehensive presentation on the opportunities available to unlock value at Toyo. To ensure market transparency and respond to requests from shareholders and other stakeholders, Palliser published the presentation first delivered by James Smith, Palliser Founder and Chief Investment Officer, at the Sohn Hong Kong Investment Leaders Conference on May 30, 2025. Toyo, a premium tire brand with a leading U.S. market share in Wide Light Truck Tires, has consistently underperformed and is materially undervalued, trading at a significant discount to peers across key valuation multiples, despite the company’s far superior revenue and profitability profile. In Palliser’s view, the factors driving this value gap are readily solvable and, if remedied, could deliver over 45% upside to shareholders – or materially more with a Palliser-proposed stakeholder value enhancement committee actively exploring options for Toyo, including interest from multiple PE and strategic buyers. Palliser’s enhancement plan includes: Adopting best-in-class performance targets and incentive structures to fully align management incentives and shareholder interests; Implementing a TSE-aligned capital allocation framework, grounded in clear and distinct metrics, returns and hurdle rates; and Conducting a comprehensive review of all strategic options to maximize stakeholder value, including privatization and resolving overhang from Mitsubishi’s investment in the company. Full details of the presentation are outlined in the accompanying attachment. About Palliser Capital Palliser Capital is a global multi-strategy fund. Our value-oriented investment philosophy is applied to a broad range of opportunities across the capital structure with a focus on situations where positive change and value enhancement can be achieved through thoughtful, constructive and long-term engagement with companies and across a range of different stakeholder groups.

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