The logo of Daikin Industries Ltd. is displayed outside the company’s showroom in Osaka, Japan.
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shares of Daikin Industries It rose 13.9% on Thursday after activist investor Elliott Investment Management said it would work with the company to improve performance and narrow its valuation gap with peers. The stock later pared its gains and was up about 11% as of 10:40 a.m. local time.
“Elliott’s significant investment in Daikin reflects our belief that the company’s market-leading businesses and impressive track record of long-term growth are undervalued by the market,” Elliott said in a statement on Thursday.
Elliott said Daikin’s upcoming medium-term management plan “provides an opportunity to address the root causes of this undervaluation by announcing concrete measures to expand margins, improve shareholder returns and review its portfolio of non-core businesses.”
The US investment firm did not disclose the size of its investment in Daikin Industries, but Japanese financial newspaper Nikkei informed On Wednesday, Elliott Investment Management acquired about 3% stake.
Before Thursday’s rally, Daikin shares were little changed so far this year. with friends mitsubishi electric And Hitachi Whereas, there has been an increase of 30% and 7.4% respectively PANASONIC Has increased by 46%.
Elliot’s statement comes after Daikin Said On April 10, a class action lawsuit was filed in the US against the Japanese company and others, alleging they conspired to artificially inflate the prices of cooling equipment.
“In the complaint, Plaintiff seeks damages and other relief from Defendants, but no specific amount claimed by Plaintiff has been disclosed,” Daikin said.
Demand for heating, ventilation and air conditioning, or HVAC systems, has increased due to a data center construction boom, while a prolonged heatwave also boosted use among homes and commercial users.
Daikin, founded in 1924, is one of the largest Japanese companies focusing on heating, ventilation and air conditioning and chemicals. The company operates in more than 170 countries, including Japan, China and North America.
