(Bloomberg) — Silchester International Investors, a London-based firm that advocates for corporate change in Japan, revealed that it has taken a stake in Nikon Corp., sending shares to their highest level in more than of a decade.
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Silchester said it owns 5% of the Tokyo-based company and may request dividend increases, share buybacks or other capital policy changes, according to a filing with the Japanese Ministry of Finance. Nikon shares jumped 10%, their highest level since 2013.
Silchester, founded by Stephen Butt and former colleagues at Morgan Stanley in 1994, has focused on taking stakes in companies outside the United States that it considers undervalued. A $100 investment in the Silchester International Equity Program as of December 31, 1994 would be worth $2,031 before investment management fees at the end of December, a gain of 1,931 percent.
Read more: Stock investor with 1,900% gain breaks long silence in Japan
In Japan, Silchester urged companies to improve their capital allocation and pay out more to shareholders. It has taken stakes in companies including regional lender Kyoto Financial Group Inc. and construction company Obayashi Corp.
While Nikon is best known for its cameras, it has recently benefited from strong demand for chipmaking equipment as the semiconductor industry has grown. The company’s shares had already risen 12% this year before Wednesday’s session.
A Nikon spokeswoman declined to comment.
Silchester revealed earlier this week that it had taken a 5% stake in Santen Pharmaceutical Co. Shares of the Osaka-based eye treatment specialist rose following the news.
–With the help of Mayumi Negishi.
(Updates with stock price from second paragraph)
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