Tokyo Gas shares jumped as much as 15% after Elliott Investment Management said it now held a major stake in the company and may make „important proposals” to the utility.
The fund has acquired 5.03% of Tokyo Gas, it said in a filing to the Finance Ministry on Tuesday. The activist investor believes the company should sell properties and real estate projects, including the Park Hyatt Tokyo hotel, that could be worth as much as ¥1.5 trillion ($9.7 billion) combined, according to a person familiar with the matter.
The surge in the share price was the most on an intraday basis since 1987. The stock was trading up 12% at ¥4,291 as of 10:53 a.m. in Tokyo.