Nissan Motor Co. shares jumped 21% last week after activist investor Effissimo Capital Management acquired a 2.5% stake in the struggling Japanese automaker. Suntera (Cayman) Ltd., a trustee of ECM Master Fund, was listed as the buyer. ECM Master Fund has previously been linked to Effissimo, a Singapore-based hedge fund known for investing in distressed companies.
This move comes at a critical time for Nissan, which recently announced plans to cut 9,000 jobs and reduce production capacity by 20% amid plummeting profits. The company also slashed its annual operating profit forecast by 70% last week.
Effissimo’s involvement has sparked speculation about potential structural reforms at Nissan. The hedge fund has a history of pushing for changes in Japanese companies, most notably in its takeover of Toshiba Corp. in 2021, which led to the resignation of Toshiba’s CEO.
The stake acquisition reflects a growing trend of shareholder activism in Japan, with both international and domestic investors increasingly demanding improved corporate governance and capital allocation practices. Other activist investors like Elliott Investment Management and Oasis Capital have also taken significant positions in Japanese firms recently.