Toshiba shares surge 10pc on Effissimo link

TOKYO: Toshiba Corp’s shares jumped as much as 10 per cent after a hedge fund disclosed that it had become the embattled conglomerate’s biggest shareholder, fuelled by optimism that the company will be able to cope with a looming multibillion-dollar writedown from its Westinghouse nuclear-equipment business.

Singapore-based Effissimo Capital Management Pte Ltd held 8.1 per cent of Toshiba as of March 15, according to a regulatory filing on Thursday, making it Toshiba’s top shareholder.

The stake is worth about 77 billion yen (RM3 billion) based on Toshiba’s current price, although it’s not clear whether the fund’s ownership has changed since the filing’s date of record.

Effissimo, which began making investments in 2006, is the first investor with an activist history to target Toshiba.

Effissimo indicated in the filing that it was making an investment in Toshiba on behalf of clients, suggesting that it’s keeping all options open.

The stake was “purely for investment”, said the fund.

Effissimo is also the largest shareholder in shipper Kawasaki Kisen Kaisha Ltd, office equipment maker Ricoh Co Ltd and electronics retailer Yamada Denki Co Ltd. Bloomberg