Elliott Investment Management announced Thursday it has taken a stake in Daikin Industries, urging the air conditioner manufacturer to enhance margins, boost shareholder returns, and review non-core assets.
The investment firm's holding is approximately 3 percent. Elliott reportedly believes Daikin should better integrate its business units, implement a share buyback program, and concentrate on its primary air conditioning operations. The source indicated Daikin has the potential to allocate up to 1 trillion yen ($6.30 billion) for buybacks in the medium term.
Daikin's shares surged 11 percent following the announcement. Elliott has been expanding its presence in Japan, previously achieving a notable success against Toyota and investing in firms such as Mitsui OSK.