Elliott Management Corp. allegedly acquired a stake of over 2% in Mitsui Fudosan Co. Ltd., a Japanese real estate developer, and is urging the developer to drop its stake in Tokyo Disney Resort operator Oriental Land, Nikkei Asia reported, citing sources.
Elliot allegedly proposed to Fudosan to sell its interest in Oriental Land and use the proceeds from the sale to buy back its shares for $6.7 billion. Mitsui Fudosan's stake in Oriental Land, worth approximately ¥500 billion should be sold for cash to assist in the endeavor of the developer conducting a one trillion yen buyback of its own shares, the news agency reported.
Elliott Management sees "room for the developer to improve return on equity," which stands around 7%, with its main competitors, Nomura Real Estate Holdings and Sumitomo Realty & Development standing at 10% and 9%, respectively, according to the report.
