SURDF - Activist Investor Presses Mitsui Fudosan To Offload Tokyo Disney Resort Operator Shares Proposes $6.7B Buyback: Report | Benzinga
Activist investor Elliott Management has acquired a 2% stake in Mitsui Fudosan Co Ltd (OTC:MTSFY), a leading Japanese developer. The investor is now reportedly pressuring the company to sell its shares in Oriental Land (OTC:OLCLY).
What Happened: Elliott Management, a U.S.-based investment fund, is advocating for Mitsui Fudosan to divest its stake in Oriental Land, a key operator of the Tokyo Disney Resort, reported Nikkei Asia on Monday. The activist investor has been gradually increasing its stake in Mitsui Fudosan, positioning itself as one of the company’s top five shareholders.
Elliott Management is proposing that the proceeds from the sale of the Oriental Land shares, valued at approximately 500 billion yen, be used for a 1 trillion yen ($6.74 billion) share buyback. The activist investor believes that this move could significantly improve the developer’s return on equity, which currently stands at around 7%, compared to 10% and 9% for its competitors Nomura Real Estate Holdings Inc (OTC:NMEHF) and Sumitomo Realty & Development Co Ltd (OTC:SURDF), respectively.
Despite Mitsui Fudosan’s historical ties with Oriental Land, Elliott Management is advocating for a complete divestment of the shares. The investor believes that this move would ...