Elliott Investment Management has taken a stake in Japanese regional utility Kansai Electric Power, according to a person familiar with the matter, the latest move by activist shareholders to squeeze value from Japanese companies.
The hedge fund owns between 4% to 5% of Kansai Electric, the person said, asking not to be identified discussing a private matter. Elliott sees the utility as having more than ¥2 trillion ($13.5 billion) of assets, including real estate, outside of its core energy business, the person said. Shares jumped as much as 9.5% in Tokyo.
New York-based Elliott has also urged Kansai Electric to sell off ¥150 billion a year of noncore assets, and use the proceeds to boost dividends and share buybacks, the person said. Elliott has asked Kansai to lift its dividend to ¥100 from ¥60, the person added.
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