Shares of Japan’s Daikin Industries (OTC:DKILY) (OTC:DKILF) jumped on Thursday after U.S. activist investor Elliott Investment Management said it would work with the air conditioner and refrigerator maker to enhance performance and narrow its valuation gap with peers.
Daikin’s shares closed 9.09% higher at ¥22,090 ($138.96) in Tokyo trading, as Japan’s Nikkei 225 hit an all-time high amid a broader rally in Asian markets.
The activist investor plans to collaborate with Daikin to improve performance and narrow the valuation gap with its rivals. Elliott said on Wednesday that its major investment in the Japanese cooling solution giant reflects confidence that the company’s strong businesses and long-term growth are undervalued.
The U.S. investment firm views Daikin’s forthcoming medium-term management plan as a chance to rectify the undervaluation issues.
Elliott intends to disclose specific measures to widen margins, enhance shareholder returns, and reassess its portfolio of non-core businesses. …
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