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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