TOKYO, March 18: Elliott Investment Management has taken a 'significant' stake in Mitsui OSK Lines, according to sources. The hedge fund is urging the shipping company to improve shareholder returns and capital efficiency. Elliott believes Mitsui OSK should review its real estate portfolio and consider relisting subsidiary Daibiru, which owns commercial properties in central Tokyo.
Mitsui OSK, which owns over 900 vessels, aims to raise its price-to-book ratio from 0.67 to 1. The Tokyo bourse is pressuring companies trading below book value to improve capital use. Mitsui OSK emphasizes both shareholder returns and growth investment.
Elliott has been active in Japan, recently influencing Toyota's bid for Toyota Industries. The hedge fund also invested in Tokyo Gas and Sumitomo Realty & Development. A Mitsui OSK-owned container ship sustained minor damage in the Gulf last week.