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brewing storm is gathering at Sapporo Holdings Ltd, Japan's largest beer manufacturer. A board candidate backed by the company's largest shareholder is calling for greater transparency on its plans to offload a significant portion of its real estate holdings. Paul Brough, a seasoned director with experience at Toshiba and nominee of Singapore-based 3D Investment Partners, believes Sapporo's strong brands are being hindered by poor results and misallocated capital.

    "We need to level with our shareholders," Brough emphasized in an interview. "They deserve to know where we stand on the real estate disposal process." His nomination has been endorsed by proxy advisory firm Glass Lewis, following a similar recommendation from ISS. However, Sapporo opposes his candidacy due to concerns over skill overlap and potential conflicts of interest.

    The company's real estate business has been a subject of contention for years, with multiple proposals received from investors seeking capital injections. Sapporo aims to finalize a plan by year-end, but 3D Investment Partners, which now holds over 19% of the company, remains critical of management. This isn't the first time Sapporo has faced pressure; in 2007, activist fund Steel Partners attempted to take control, urging the company to divest underperforming units and improve real estate management.

    As the annual shareholders meeting approaches on March 28, Brough's election could bring about significant changes. If successful, he would advocate for using proceeds from real estate sales to pursue strategic acquisitions, buybacks, or special dividends.