By Jason Chau
Nidec shares jumped after activist investor Oasis Management disclosed a sizable stake in the Japanese motor maker and called for governance reforms.
The company's Tokyo-listed stock rose as much as 7.9% on Thursday before ending 3.9% higher.
The gains came after Hong Kong-based Oasis Management said Wednesday that it now holds a 6.7% stake in Nidec and is in talks with the Japanese company to help restore its corporate value and improve governance. Oasis obtained 80.3 million shares in Nidec for 178.3 billion yen, equivalent to $1.12 billion, a regulatory filing showed.
Nidec, one of the world's largest producers of electric motors, has been embroiled in a monthslong investigation into accounting irregularities.
The company's stock was placed on special alert by the Tokyo Stock Exchange in October and risks being delisted unless it improves internal controls.
Since then, Nidec's founder, Shigenobu Nagamori, has resigned from the company's board, and several other executives have left.
Oasis acknowledged the improper accounting issues at Nidec in its statement, saying they are "extremely serious" and reflect structural problems in its corporate governance framework and culture.
However, the activist investor affirmed Nidec's underlying business "remains highly competitive and possesses significant growth potential," adding that its current share price is significantly undervalued.
"Oasis believes that Nidec has ample potential to restore its corporate value if meaningful governance reforms, together with business reforms, are implemented and market confidence is regained," it said.
Write to Jason Chau at jason.chau@wsj.com
(END) Dow Jones Newswires
03-12-26 0408ET
