Elliott, an activist investment firm, takes a stake in Daikin Industries; stock price surges 14%

Glonghui, April 16 – The share price of Daikin Industries, Ltd. recorded its largest increase since 2009 after Elliott Investment Management acquired a stake in the Japanese air-conditioning manufacturer and stated that its share price was “severely undervalued” by the market, while also urging the company to improve profitability, enhance shareholder returns, and divest non-core businesses. In early trading in Tokyo on Thursday, after the activist investor disclosed it had amassed a large holding in Daikin Industries, the company’s share price soared as much as 14%. Elliott commented, “We are committed to constructive collaboration with the company.” Not long ago, Elliott successfully pushed the Toyota Group to raise its acquisition offer for Toyota Industries Corporation, and is now stepping up investment moves in the Japanese market. Last month, the firm announced an investment in shipping company Mitsui O.S.K. Lines, which is part of a wave of activist investment sweeping Japan’s corporate sector, as market pressure mounts on companies to prioritize shareholder returns. In a report, SMBC Nikko Securities analysts wrote: “We believe that, with Elliott’s investment support, Daikin Industries needs to strengthen its engagement and communication with the capital markets to attract renewed investor attention to its stock.” Daikin Industries has confirmed Elliott’s stake but declined to comment.