A London-based activist investor has sent letters to directors of two Japanese companies controlled by founding families, blaming them for share prices at "extremely depressed" levels. The investor argues that poor governance and underperformance are weighing on valuations, a common critique in Japan's corporate landscape.

This move targets a long-standing issue in Tokyo's market: founding families often hold controlling stakes but resist changes that could unlock shareholder value. The activist's pressure follows years of sluggish returns, pushing for reforms like improved capital efficiency or strategic pivots to boost investor confidence.

The letters signal growing impatience with Japan's corporate governance reforms. Investors will watch for any public response from the companies or board actions. A key test is whether this pressure can force tangible changes, potentially setting a precedent for other family-dominated firms facing similar scrutiny.