Nissan Shareholders Approve Post-Ghosn Governance Overhaul

Shareholders arrive for Nissan's general meeting of shareholders in Yokohama, near Tokyo, Tuesday, June 25, 2019. Japanese automaker Nissan faces shareholders as profits and sales tumble after its former star chairman faces trial on financial misconduct allegations.(AP Photo/Koji Sasahara)
Shareholders arrive for Nissan's general meeting of shareholders in Yokohama, near Tokyo, Tuesday, June 25, 2019. Japanese automaker Nissan faces shareholders as profits and sales tumble after its former star chairman faces trial on financial misconduct allegations.(AP Photo/Koji Sasahara)
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Nissan Shareholders Approve Post-Ghosn Governance Overhaul

Shareholders arrive for Nissan's general meeting of shareholders in Yokohama, near Tokyo, Tuesday, June 25, 2019. Japanese automaker Nissan faces shareholders as profits and sales tumble after its former star chairman faces trial on financial misconduct allegations.(AP Photo/Koji Sasahara)
Shareholders arrive for Nissan's general meeting of shareholders in Yokohama, near Tokyo, Tuesday, June 25, 2019. Japanese automaker Nissan faces shareholders as profits and sales tumble after its former star chairman faces trial on financial misconduct allegations.(AP Photo/Koji Sasahara)

Nissan shareholders Tuesday approved an overhaul intended to strengthen governance at the crisis-hit Japanese automaker, still reeling from the Carlos Ghosn scandal and facing tensions with its French partner Renault.

Shareholders voted in favor of a series of reforms, including the establishment of three new oversight committees responsible for the appointment of senior officials, pay issues and auditing.

They also approved the election of 11 directors as the firm restructures, among them two Renault executives as well as current Nissan CEO Hiroto Saikawa.

The reforms are designed to put Nissan on a more stable footing after the shock caused by former boss Ghosn's arrest on multiple financial misconduct charges.

Adding to the company's operational woes, net profit fell to a near-decade low in the last business year and it has already warned of "a difficult business environment" for the next 12 months.

But the reform plan nearly fell apart after Renault, which owns 43 percent of Nissan, complained it did not have enough of a say in the new structure.

Crisis was averted when Nissan suggested Renault chairman Jean-Dominique Senard sit on the appointments committee, and CEO Thierry Bollore on the audit committee.

However, Renault will not be represented on the new committee on pay -- possibly reflecting longstanding rancor in Japan over Ghosn's high compensation compared to most Japanese CEOs.

- Under pressure -

Saikawa has himself come under pressure, both for the disastrous financial performance of the firm and because the Ghosn protege is seen as a legacy of that era.

He opened the meeting Tuesday at Nissan's headquarters in Yokohama outside Tokyo by offering "sincere regrets" over the tumult that has engulfed the firm in recent months.

Saikawa assured shareholders he would protect the independence of Nissan, part of a three-way alliance with Renault and Japan's Mitsubishi Motors.

Ghosn has accused Nissan executives of seeking to block his plans to more closely integrate the Japanese firm with Renault.

And Saikawa said Tuesday that "autonomy" would remain important for Nissan, while vowing to work with Senard to keep the alliance going in "the most sustainable way".

He said the sensitive issue of the current structure of the tie-up could need to be reconsidered "if imbalance becomes a factor of instability".

The three-way alliance is the world's biggest-selling auto group, but it has been seriously strained by November's shock arrest of Ghosn, considered one of the auto industry's most powerful executives.

Since then, Nissan has accused Renault of having too much weight in the group, and of keeping it in the dark over its tie-up plans with Fiat Chrysler (FCA), which collapsed over reservations expressed by the French government.

"Rebuilding a bond of trust is not very easy," noted Tatsuo Yoshida, an analyst at Sawakami Asset Management.

Senard told shareholders the FCA merger talks were meant to strengthen Renault's alliance with Nissan.

"I beg you to believe me on that. There was no aggressive intention towards the company I am the director at," he said.

Senard told a small group of journalists after the meeting that the recovery of Nissan was "the absolute priority."

"In the state the company finds itself, you would have to be blind or deaf not to understand that it is the main priority. The rest is secondary," said Senard.

Ghosn, who has been sacked from all his roles at the auto firms, awaits trial in Japan on charges of under-reporting millions of dollars in salary and of using company funds for personal expenses.

Ahead of the meeting, 67-year-old shareholder Hideo Yamada said he thought "there will be another round of tensions ahead" between Renault and Nissan, as they struggle to rebuild their relationship.

Kiyoshi Shimizu, 70, said he was "70 percent in favor" of the proposed governance reforms, but "30 percent worried that it may slow the (management) speed".

"It will be impossible to make quick top-down decisions," he said.



Saudi Arabia’s flynas Successfully Completes Final Allocation of IPO Shares

A Saudi flynas aircraft. (Asharq Al-Awsat) 
A Saudi flynas aircraft. (Asharq Al-Awsat) 
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Saudi Arabia’s flynas Successfully Completes Final Allocation of IPO Shares

A Saudi flynas aircraft. (Asharq Al-Awsat) 
A Saudi flynas aircraft. (Asharq Al-Awsat) 

Saudi Arabia's flynas has successfully completed the final allocation process for its initial public offering (IPO) shares, setting a minimum allotment of 10 shares for each individual subscriber.

This IPO is considered the first of its kind for a Gulf airline in nearly 20 years. flynas will become the third Gulf airline to go public, following the listings of Air Arabia in the UAE and Jazeera Airways in Kuwait.

In a statement, the company confirmed that any surplus subscription funds - if any - will be refunded to individual subscribers no later than June 5. The company will be listed on the Saudi stock exchange once regulatory procedures are completed.

Saudi Minister of Transport Saleh Al-Jasser stated on the X platform that the IPO of the first Saudi airline on the stock market, along with the high oversubscription rates, “reflects the high level of confidence in the Kingdom's aviation sector, which is witnessing remarkable developments and unprecedented annual growth rates, increased air traffic and connectivity, as well as significant investments in infrastructure, all supported by Prince Mohammed bin Salman, Crown Prince and Prime Minister.”

“Congratulations to flynas on the successful IPO and listing. The aviation sector will continue to enhance its developmental role in supporting the national economy and expanding investment and growth opportunities, in partnership with the private sector,” he added.

The individual investor subscription period, which began on May 28 and lasted for three days, saw the participation of 666 investors, with a final offering price of 30 riyals per share.

Total demand from this segment reached approximately SAR 2.868 billion ($746.5 million), resulting in a coverage ratio of 349.70%.

Meanwhile, flynas reported a net profit of SAR 148 million ($39.4 million) for the first quarter of this year, marking a 1% decrease compared to the net profit of SAR 149 million recorded in the same period last year. However, the company's adjusted net profit increased by 78%.

In a statement, the company attributed the decline in profit to exceptional gains of 66 million riyals recorded in Q1 2024 from a sale and leaseback transaction, which did not recur in the current quarter.

Operating profit rose by 78%, and the company generated revenues of SAR 1.8 billion in the first quarter of 2025, a 6% increase, supported by improved ticket yields and growth in ancillary revenues.

The company stated that its revenue increased by 5% to reach SAR 1.8 billion during the first three months of 2025, attributing the growth to stronger ticket yields and increased ancillary income.