Nissan Motor Co. Shares Rise

Shares in Nissan Motor Co., Ltd. (TYO:7201) surged by their most in 15 years following reports of an activist investor's stake in the Japanese carmaker.

Citing SEC filings, media reports indicated that Suntera (Cayman) Ltd, a trustee of ECM Master Fund, had purchased 2.5% of Nissan (OTC:NSANY) stock as of the end of September.

An unrelated filing revealed that the ECM Master Fund is managed by Effissimo Capital Management, a Singapore-based hedge fund known for its high-profile campaign against Toshiba Corp. (TYO:6502). Effissimo’s accusations prompted the resignation of Toshiba's CEO in 2021, leading to the company’s buyout and privatization two years later.

Nissan expressed appreciation for all "existing and new shareholders that support and believe" in its future potential, according to a statement cited by Reuters.

An Effissimo spokesperson was not immediately available for comment, Reuters reported.

Last week, Nissan announced significant job cuts and plans to reduce global manufacturing capacity after experiencing a sharp decline in sales in China and the US. The company also issued its second full-year profit downgrade of 2023, lowering its income outlook by 70% to 150 billion yen, while promising a turnaround effort.

The stock's jump on Tuesday helped recover much of the losses incurred following the disappointing figures.

As Japan's third-largest automaker, Nissan has been facing fierce competition, particularly from Chinese electric vehicle manufacturers like BYD (SZ:002594). To improve performance in China, the world’s largest car market, Nissan has partnered with Honda (NYSE:HMC).

(Reuters contributed reporting.)