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Aspex urged Nidec to keep CEO ahead of shock resignation

Aspex said it holds about 7% of Nidec and argued the company needed management continuity while it restored financial reporting and addressed a Tokyo Stock Exchange delisting warning.

Reported · Written up by our desk · Hedge Funds

Hedge fund Aspex Management urged Nidec to keep CEO Mitsuya Kishida in place to help guide the company through an accounting crisis and a potential restructuring, according to a report by Bloomberg.

Aspex, which said it holds about 7% of Nidec, sent a letter to the company’s board on 28 September calling for Kishida to remain chief executive, provided he was deemed suitable.

Aspex said Nidec needed continuity as it worked to restore its financial reporting and address a delisting warning from the Tokyo Stock Exchange, and it also called for an update to the company’s medium-term business plan.

Nidec later announced Kishida’s resignation, prompting a sharp sell-off in the shares, and the report noted the stock fell 21% through Tuesday as Nidec faced scrutiny including reports of a possible impairment charge of around JPY1tn, Bloomberg said.

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