Seth Fischer, who runs Oasis Management Co., told Bloomberg in Tokyo that his fund has lifted its stake in Nidec Corp. enough to become the top shareholder, ahead of founder Shigenobu Nagamori's roughly 8.3% direct holding, per Bloomberg data. Nagamori stepped down as chairman emeritus earlier this year after past accounting problems emerged. Nidec is the world's largest maker of precision motors.
Oasis last week urged Nidec's board to bring in financial advisers, canvass potential buyers, and look at taking the company private. The fund said it was "deeply disappointed" by ongoing accounting irregularities, has raised red flags about the company's "corporate culture," and proposed additions to the board. Oasis warned that Nidec could be delisted if it fails to obtain an unqualified auditor's opinion. As of Sept. 9, Oasis held 7.97% of Nidec shares, according to Bloomberg data. The investor manages about $13.6 billion in disclosed Japanese equity positions, with stakes in Kakaku.com Inc., Kobayashi Pharmaceutical Co., and Kao Corp.
Activists taking the top shareholder slot usually precedes a board fight. Market Briefs covers these campaigns free every morning.
Since last year, investigations have exposed broad fraud in Nidec's accounting and quality controls at several subsidiaries. For the year ended March 31, the Kyoto-based company took impairments totaling in excess of ¥600 billion ($3.8 billion), and its auditor withheld approval of the financial statements. The Tokyo Stock Exchange has the shares on a special alert designation, and Oasis says delisting is a risk if Nidec cannot secure a clean audit opinion.
This is activism 101: pressure builds, advisers get hired, and strategic options hit the table. A bid or take-private premium could reset the stock, while failure to clean up the books keeps the delisting risk alive. For everyday investors with Japan exposure, the signal here is simple: governance and transparency can move prices as much as profits, and those shifts do not wait for earnings season.
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