Asia
Market Chatter: Japan's Activist Investors Eye Rail Operators for Potential Shareholder Value
Japan's railway operators have seen greater interest from activist investors due to perceived unlocked shareholder value, Nikkei Asia reported Thursday.Aya Nomura, daughter of activist investor Yoshiaki Murakami, holds roughly 3% in Osaka-based rail operator Kintetsu Group Holdings (TYO:9041), the report said.Nomura also owns about 2% of Nagoya Railroad (TYO:9048) and around 1% of Keihan Holdings (TYO:9045), also from Osaka, according to the report, citing May shareholder meeting releases.Other activist investors banking on railway companies include City Index Eleventh, with around 8% of holdings in Keikyu (TYO:9006) as of March, and 3D Investment Partners, holding around 7% in Seibu Holdings (TYO:9024) as of May, the report said.Railway stocks are materially undervalued as per the activists, with Nagoya Railroad and Keihan Holdings' price-to-book ratio of 0.7% and 0.9%, respectively, being under the liquidation value of 1, the report said.Rail operators also own large amounts of real estate with unrealized gains, such as train stations and commercial complexes, according to the report.The activists are pushing for the sale of underutilized real estate or redevelopment through partnerships to improve the rail operators' asset efficiency, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Nikkei 225TYO:9006TYO:9024TYO:9041TYO:9045TYO:9048
