A significant increase was recorded in Nikon shares on the Tokyo Stock Exchange, following the purchase of 5% of its capital by Silchester International Investors, a British investment fund with potential activist leanings.
The value of the shares of the Japanese giant rose by 10.32%, fueled by the hypothesis that Silchester could use its stake in Nikon to push towards the release of higher dividends, the implementation of share buyback programs and the introduction of other capital management measures, as revealed by documents made public online by the Japanese Ministry of Finance.
While Nikon is widely recognized for its cameras, a shrinking market, it has expanded its offerings by diversifying into other areas in recent years. This includes lithography for the semiconductor industry and medical imaging devices. Furthermore, in March, Nikon finalized the acquisition of Red, a small American manufacturer of high-quality cameras, with the aim of strengthening its presence in the video market, a much livelier sector than the photographic one, where the Japanese group was losing ground.
Thanks in particular to its foray into the increasingly sought-after semiconductor sector, Nikon’s stock value has seen impressive growth in recent years. Despite this, its share price still appears cheap, standing at 1,725 yen per share at Wednesday’s close, equivalent to 10.40 euros, making it particularly attractive to foreign investors who are capitalizing on the yen’s depreciation against other major world currencies such as dollar, euro and British pound.