3/11/2026
Oasis Management Takes Stake in Troubled Nidec, Urges Governance Reform
Nikkei Asia (03/11/26) Obe, Mitsuru
Oasis Management, a Hong Kong-based investor, has acquired a 6.7% stake in Nidec (6594.T), the scandal-hit Japanese motor maker, according to a regulatory filing disclosed on Wednesday, and has demanded the Kyoto-based company undertake a governance overhaul. The filing shows that Oasis obtained 80.3 million shares in Nidec for 178.3 billion yen ($1.12 billion). The company's move came after Nidec disclosed the findings of a third-party committee that has been investigating the company's accounting irregularities. "Oasis believes that Nidec's underlying business remains highly competitive and possesses significant growth potential," it said in a statement. Given the company's technological leadership, broad customer base and extensive global operations, "Oasis believes that Nidec's current share price is significantly undervalued relative to its intrinsic value." Nidec, the world's largest electric motor maker, was once a darling on the stock market, nearly doubling its share price in 2021 alone, as investors hailed the company's expansion from motors for hard disc drives to those for electric vehicles. The company made major investments in China, aiming to dominate the market for EV motors in China. However, the company quickly met with serious Chinese competition and became embroiled in severe price competition. Founder Shigenobu Nagamori, who owns 8.6% of the company and served as CEO until 2024, made scenes in earnings calls, publicly dressing down his executives for failing to improve the company's performance. Widespread accounting irregularities came to the surface last year. In September, the company established a third-party committee to look into the issue. Nagamori resigned as board chairman in December, and that was followed in February by the announcement of his complete withdrawal from running the company. The third-party committee's report said Nagamori was ultimately responsible for the problems, as he applied "considerable pressure" on executives to achieve performance targets. It said Nidec had recognized "legacy liabilities," but the top leader's stance made it difficult for business units and subsidiaries to handle them appropriately. The series of accounting issues "are extremely serious," Oasis said, saying they are "not merely isolated incidents, but rather, structural problems arising within a corporate culture shaped by excessive pressure to meet performance targets and the strong influence of the company's founder." Among the issues cited by Oasis are a lack of ethical judgment among management that effectively tolerated improper accounting, and the failure of outside directors to properly fulfill their oversight responsibilities. Oasis went on to call for strengthening the effectiveness of the board's oversight function, appointing truly independent outside directors, including individuals with particular management and accounting expertise, and establishing a governance structure that does not rely excessively on the influence of a particular individual. It also demanded that Nidec address the responsibilities of current and former directors and executive officers, including Nagamori. "We believe that without a sincere reflection on the failures that occurred, and a proper attribution of responsibility, the company cannot achieve a true and lasting turnaround."
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