Latest news for Oriental Land (OTC:OLCLY) Stock

ORIENTAL LAND CO

Oriental Land Co Ltd is a Japan-based company operates Tokyo Disney Resort. Segments in which the group functions include Theme Park, Hotel Business, and Other Business. Theme Park segment is engaged in the operation and management of Tokyo Disneyland and Tokyo DisneySea theme Parks. The Hotel segment operates and manages hotels such as Ambassador Hotel, Urayasu Brighton Hotel, Kyoto Brighton Hotel and others. In addition, it also operates shopping complex which composed of shops and restaurants as well as a cinema complex and offers monorail service around Tokyo Disney Resort. Oriental generates the majority of revenue through Theme Park segment.

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Elliott Management, a U.S.-based investment fund, has been increasing its stake in Mitsui Fudosan, Japan&#39;s top property group, since last year. This has positioned Elliott as one of the developer&#39;s five largest shareholders, giving it the leverage to make these demands. 

Activist Investor Presses Mitsui Fudosan To Offload Tokyo Disney Resort Operator Shares, Proposes $6.7B Buyback: Report

ORIENTAL LAND CO LTD ADR by Oriental Land Co., Ltd.

Oriental Land Co Ltd

Disney to launch new cruise in Japan in 2028

Oriental Land

Activist investor Elliott Management has acquired a 2% stake in Mitsui Fudosan Co Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MTSFY#OTC">MTSFY</a>), a leading Japanese developer. The investor is now reportedly pressuring the company to sell its shares in Oriental Land (OTC:<a class="ticker" href="https://www.benzinga.com/stock/OLCLY#OTC">OLCLY</a>). 



What Happened: Elliott Management, a U.S.-based investment fund, is advocating for Mitsui Fudosan to divest its stake in Oriental Land, a key operator of the Tokyo Disney Resort, <a href="https://asia.nikkei.com/Business/Travel-Leisure/Activist-fund-Elliott-pushes-Mitsui-Fudosan-to-dump-Tokyo-Disney-stake">reported</a> Nikkei Asia on Monday. The activist investor has been gradually increasing its stake in Mitsui Fudosan, positioning itself as one of the company&#8217;s top five shareholders.



Elliott Management is proposing that the proceeds from the sale of the Oriental Land shares, valued at approximately 500 billion yen, be used for a 1 trillion yen ($6.74 billion) share buyback. The activist investor believes that this move could significantly improve the developer&#8217;s return on equity, which currently stands at around 7%, compared to 10% and 9% for its competitors Nomura Real Estate Holdings Inc (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NMEHF#OTC">NMEHF</a>) and Sumitomo Realty &amp; Development Co Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SURDF#OTC">SURDF</a>), respectively.



Despite Mitsui Fudosan&#8217;s historical ties with Oriental Land, Elliott Management is advocating for a complete divestment of the shares. The investor believes that this move would enable Mitsui Fudosan to improve its return on equity, which currently lags behind its competitors.



See Also: <a href="https://www.benzinga.com/markets/commodities/24/01/36865220/with-an-anticipated-supply-gap-has-the-recent-sell-off-in-lithium-equities-created-opportunit?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">With An Anticipated Supply Gap, Has The Recent Sell-Off In Lithium Equities Created Opportunities For Investors?</a>



Mitsui Fudosan, Oriental Land, and Elliott Management did not immediately respond to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga</a>'s request for comment.



The Oriental Land Company fully owns and operates the Tokyo Disney Resort under a license from The Walt Disney Company.



Why It Matters: Elliott Management has been actively involved in the Japanese market. The firm previously acquired shares in SoftBank Group and advocated for a share buyback. Before Toshiba went private, Elliott also appointed a director to the tech group&#8217;s board. More recently, Elliott became a major shareholder of Dai Nippon Printing and is pushing the firm to sell off real estate holdings and cross-held shares.



These developments are in line with Elliott&#8217;s previous activities, such as its <a href="https://www.benzinga.com/news/23/01/30516776/activist-investor-elliott-makes-multibillion-dollar-investment-in-salesforce-wsj">multibillion-dollar investment in Salesforce</a> and its subsequent push for changes in the company&#8217;s strategy. The current move to influence Mitsui Fudosan&#8217;s strategy reflects Elliott&#8217;s ongoing efforts to drive change in the Japanese market.



Meanwhile, Walt Disney Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) will <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/36944310/disney-q1-earnings-preview-media-company-battling-desantis-musk-peltz">report first-quarter financial results</a> after market close on Wednesday. Disney is expected to report first-quarter revenue of $23.685 billion according to data from Benzinga Pro. The company reported $23.512 billion in revenue in the prior year period.



Read Next: <a href="https://www.benzinga.com/markets/equities/24/02/36925173/if-you-invested-1000-in-apple-when-steve-jobs-returned-to-apple-28-years-ago-heres-how-much-youd?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">If You Invested $1000 In Apple When Steve Jobs Returned To Apple 28 Years Ago, Here&#8217;s How Much You&#8217;d Have</a>



Photo by Younho Choo on Unsplash




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Latest news for Oriental Land (OTC:OLCLY) Stock

Tuesday, February 06, 2024