Elliott Investment Management has announced it has acquired a stake in Daikin Industries. The activist investor is pressing the air conditioner manufacturer to improve profit margins, increase shareholder returns, and consider divesting non-core assets.
While Elliott did not disclose the precise size of its stake, sources familiar with the matter indicate it is approximately 3 percent. The investor advocates for better business integration, the implementation of a share buyback program, and a stronger focus on Daikin's primary air conditioner operations. It is suggested Daikin has the capacity to allocate up to 1 trillion yen ($6.3 billion) for buybacks in the medium term.
Daikin acknowledged awareness of Elliott's stake but declined to offer further comment. The news prompted an 11 percent surge in Daikin's shares during morning trading in Tokyo. This move by Elliott follows its increasing engagement in Japan, including a notable past campaign against Toyota and investments in companies like Mitsui OSK.