Shares of Fuji Media rose as much as 7.5% to the highest level since 2007 after Japan’s Rheos Capital Works reported it had a 5% stake on Friday.
Rheos, which manages a popular fund called Hifumi, holds 5.12% of Fuji Media shares after building its stake from Jan. 20 to Thursday, according to a filing to the Finance Ministry. Rheos doesn’t intend to make important proposals to management, it stated in the filing.
Rising Sun Management, an activist shareholder firm, urged Fuji Media to set up a third-party committee to investigate a sexual harassment scandal involving the former pop idol-turned-TV host Masahiro Nakai. Since Rising Sun’s first attempt in January, shares have surged on speculations that new management will be more accommodating to shareholders.
A well-known asset manager holding Fuji Media shares is positive news for the stock, says Nobuhiko Kuramochi, vice president of Parasol. Still, the investment appeal may fade as the 12-month forward price-earnings ratio gets close to the upper limit of the past 10 years, and the expected return on equity remains low, he said.
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