TOKYO (Reuters) - Beer manufacturer Sapporo Holdings Ltd ( SOOBF ) needs to be more transparent about its plans to divest some of its substantial real estate holdings, said a board candidate backed by the Japanese company's largest shareholder.

Paul Brough, a former independent director at Toshiba and nominee of Singapore-based 3D Investment Partners, said Sapporo has strong brands but has been plagued with poor results and ineffective capital allocation.

"We need to build transparency with our shareholders," Brough said in an interview on Friday. "We need to tell them where we are with the real estate disposal process."

3D Investment said on Monday that shareholder proxy advisory firm Glass Lewis has backed Brough as an outside director for Sapporo, seconding an earlier recommendation by ISS, another proxy advisory firm.

Sapporo said it opposes Bough's nomination due to a skill overlap with other directors and because his advisory role with 3D Investment makes him "non-independent."

Last month, the company said it has received proposals from more than 10 companies and funds regarding capital injections into its real estate business. Sapporo said it will decide on a plan by the end of this year.

3D, which has increased its stake in Sapporo to more than 19%, according to LSEG data, has been openly critical of the company's management since at least 2022. 

Sapporo was previously the target of a takeover bid in 2007 by U.S.-based activist fund Steel Partners, which had urged the company to sell off underperforming units and improve management of its real estate holdings.

The company is due to hold its annual shareholders meeting on March 28. Brough said if he were elected to the board, he would urge the company to use proceeds from real estate sales to consider strategic acquisitions, buyback or special dividends.