Daikin Shares Jump Over 9% In Tokyo As Elliott Reportedly Snaps Up Stake And Looks To Enhance Performance

Shares of Japan’s Daikin Industries (OTC:DKILY) (OTC:DKILF) jumped on Thursday after U.S. activist investor Elliott Investment Management said it would work with the air conditioner and refrigerator maker to enhance performance and narrow its valuation gap with peers.

Daikin’s shares closed 9.09% higher at ¥22,090 ($138.96) in Tokyo trading, as Japan’s Nikkei 225 hit an all-time high amid a broader rally in Asian markets.

The activist investor plans to collaborate with Daikin to improve performance and narrow the valuation gap with its rivals. Elliott said on Wednesday that its major investment in the Japanese cooling solution giant reflects confidence that the company’s strong businesses and long-term growth are undervalued.

The U.S. investment firm views Daikin’s forthcoming medium-term management plan as a chance to rectify the undervaluation issues.

Elliott intends to disclose specific measures to widen margins, enhance shareholder returns, and reassess its portfolio of non-core businesses. While the exact scale of Elliott’s investment in Daikin is not revealed, Nikkei reported that the firm has procured about a 3% stake in the company.

Daikin Industries did not respond to Benzinga‘s request for comments.

Elliott Expands Japan Footprint

The news follows Daikin’s disclosure earlier this month that it is facing a U.S. class action lawsuit alleging price-fixing in cooling equipment, with damages yet to be specified. Meanwhile, Elliott has been expanding its footprint in Japan, building stakes in firms such as Toyota Motors (NYSE:TM) and Mitsui OSK (OTC:MSLOY).

Elliott Management raised its stake in Toyota Industries by about 7% to oppose a take-private bid, arguing the ¥18,800-per-share ($118.27) offer undervalues the company.

The investor has a history of taking substantial stakes in companies and driving operational changes to boost performance. In December 2025, PepsiCo Inc. (NASDAQ:PEP) announced a series of operational changes backed by Elliott, including a supply chain review and a streamlined product lineup.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image via Shutterstock