Japanese office supplies manufacturer Kokuyo saw its shares surge 13% after Hong Kong-based activist investor Oasis Management disclosed a 5% stake worth ¥13.1 billion ($84.9 million).
The investment makes Oasis the third-largest shareholder in Kokuyo, following Master Trust Bank of Japan’s 10.88% holding and Kokuyo Kyoeikai Association’s 8.53% stake. The activist fund cited portfolio investment and plans to make important proposals as reasons for the purchase.
The move comes at a challenging time for Kokuyo, which recently cut its 2024 operating profit forecast by 10% to ¥21.5 billion. The company reversed its earlier growth projections, pointing to weakening sales of office furniture and stationery products in China.
Oasis acquired 6.09 million shares as of last Friday, according to a regulatory filing with the Kanto Local Finance Bureau. The stock closed at ¥2,768 on Wednesday.
The activist fund’s entry raises questions about potential strategic changes at Kokuyo, which has struggled to maintain growth in its core markets. The company’s recent performance suggests it may need to reassess its business strategy, particularly in China where economic challenges persist.
