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Hedge fund Elliott Management has built a “significant” stake in Japanese conglomerate Toshiba and added it to people near a company called “Wolf Flock” of shareholder activists.
The fund, which manages $ 48 billion in assets, has met many times with the board and advisors of Japanese companies, according to people who are directly aware of the issue. Two people close to Toshiba said Elliott’s stake did not exceed 5%.
“Investing in Toshiba reflects a strong belief in the company’s underlying value,” Elliott confirmed in a statement to the Financial Times. “In recent months, I have been encouraged by the constructive nature of my involvement with the company.”
Another person close to Toshiba said Elliott had been a shareholder of the Japanese group “for a while” and did “a lot of work”, describing the fund’s approach as “thoughtful.”
Toshiba declined to comment, saying it did not disclose discussions with individual shareholders.
Elliott’s move happens when Toshiba’s board is approaching its final stages Important strategic review, A series of measures forced by the company following this year’s activist-led shareholder rebellion Retired senior management..
Funds for activists and special events are camp out on Toshiba’s shareholder registry in the hope that investors can force the company to take a strategy to raise stock prices significantly.
Toshiba’s shareholder list has undergone many significant changes in the past few months, with some of its largest shareholders after its share price hit a six-year high of $ 5,000 ($ 45) in mid-July. Has reduced its position.
The best prize that top shareholders have previously told FT is the acquisition of private equity, which has an overall value of over $ 30 billion. Other measures may include the sale of a major Toshiba subsidiary, the proceeds of which will be used to fund a large share buyback.
People close to Toshiba’s board say they have been working with Toshiba’s shareholders on an “unprecedented level” in recent weeks. Some activist funds say they will vote against the future nomination of CEOs if strategic reviews do not show that Toshiba has actively pursued the possibility of selling to private equity. rice field.
However, people close to the two large private equity funds said they considered the potential acquisition of Toshiba and decided early on to oppose it.
Toshiba’s investment is Elliott’s latest hottest campaign in the Japanese market. It made a big bet Last year at Softbank, a technology investment group.
According to controversial sources, the fund aims to expand its team in Tokyo due to the abundant opportunities the market has recently offered as Japanese companies sell more non-core assets.
Activist fund Elliott targets Toshiba by building stake Source link Activist fund Elliott targets Toshiba by building stake
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