Investing.com - Shares in Nissan Motor Co., Ltd. (TYO:7201 ) surged by their most in 15 years on reports that an activist investor had taken a stake in the Japanese carmaker.
Citing filings with the SEC, media reports said Suntera (Cayman) Ltd, a trustee of ECM Master Fund, had purchased 2.5% of Nissan (OTC:NSANY ) stock as of the end of September.
An unrelated separate filing showed that ECM Master Fund was managed by Effissimo Capital Management, a Singapore-based hedge fund known carrying out a high-profile campaign against Japan's Toshiba Corp. (TYO:6502 ) Effissimo's accusations that the company had infringed on shareholders led to the resignation of its CEO in 2021. The firm was bought out two years later and privatized.
Nissan said it appreciated all "existing and new shareholders that support and believe" in its future potential, Reuters reported, quoting a statement from the group.
An Effissimo spokesperson could not be immediately reached for comment, Reuters added.
Last week, Nissan unveiled sweeping job cuts and a move to reduce its global manufacturing capacity following a sharp dip in sales in China and the US. It also issued its second full-year profit downgrade of the year, slashing its income outlook by 70% to 150 billion yen, and promised to pursue a turnaround effort.
Tuesday's jump in the stock helped to pare back much of the losses logged after the figures were released.
Japan's third-largest automaker, Nissan has been struggling to compete with fierce competition from the likes of Chinese electric vehicle brands like BYD (SZ:002594 ). It has partnered with Honda (NYSE:HMC ) to help revive its performance in China, the world's biggest car market.
(Reuters contributed reporting.)
Source: Investing.com