Activist fund: People walk past an electronic board displaying the numbers on the Tokyo Stock Exchange. Elliott’s investment strategy reflects rising shareholder activism, as the government puts pressure on firms to pay heed to investors’ perspectives. — AFP
TOKYO: Dai Nippon Printing Co says that Elliott Investment Management looks to have substantially reduced its position in the company, less than two years after the activist fund bought a stake. The news sent its share price down.
“There’s a possibility that they hold our shares under different names, but our understanding is that their holding now is almost non-existent,” said an investment relations official at Dai Nippon Printing. Elliott declined to comment in an emailed response to questions from Bloomberg.
A half-yearly report filed by Dai Nippon Printing showed two Elliott-related entities – Elliott International LP and the Liverpool Limited Partnership – were not among its top 10 shareholders as of Sept 30.
Six months earlier, Elliott International held almost 6.5 million shares, or 2.70% of the company, while Liverpool Limited Partnership had just over three million shares, or around 1.3% of the total.
Dai Nippon Printing, which is increasingly drawing its revenue from products for electric vehicle batteries, OLED and chips, announced a large share buyback programme in March last year. That was less than two months after Elliott’s stake was reported.
Elliott praised the decision and the announcement led to a jump in the company’s share price.
The stock has risen almost 80% from its level just before Elliott’s stake was first reported, surpassing gains of less than 40% in the Topix index during the same period.
The price-to-book ratio briefly rose above one from around 0.6 before the Elliott stake was first reported. It last stood around 0.9.
Elliott has been active in Japan this year, investing in Tokyo Gas Co, Sumitomo Corp, SoftBank Group Corp and Mitsui Fudosan.
Its aggressive investment strategy reflects rising shareholder activism in Japan, as the government and the Tokyo Stock Exchange have been putting pressure on companies to pay heed to investors’ perspectives. — Bloomberg
