Activist investor Elliott Management has become one of the top three shareholders of Kansai Electric Power with a stake of between 4 per cent and 5 per cent, the Financial Times said on Wednesday, citing people familiar with the matter.
Kansai Electric’s shares jumped 6 per cent following the report.
Elliott is urging Kansai Electric, a major nuclear power operator, to increase dividends and share buybacks by selling 150 billion yen ($1 billion) in non-core assets annually, according to the report.
Elliott has identified non-core assets at the company worth more than 2 trillion yen, including a stake in a construction firm and real estate worth more than 1 trillion yen, the FT reported.
Kansai Electric declined to comment on individual shareholders but said “we remain committed to maintaining careful communication with our shareholders”.
Elliott did not immediately respond to a request for comment.
Japanese companies are under pressure from regulators and the Tokyo bourse to boost shareholder returns and corporate value, driving foreign investor interest in the market.
Elliott has been expanding its investing activities in Japan and has targeted companies including Tokyo Gas and Dai Nippon Printing.
Kansai Electric is Japan’s biggest nuclear power operator by number of reactors online and is planning to build a new reactor in Fukui prefecture in western Japan.
($1 = 147.4700 yen)
