As developments continue surrounding the accounting misconduct issue, Nidec disclosed its consideration of a large-scale impairment loss and changes to its officers. Its share price has continued to languish, and the possibility of the company becoming an acquisition target has again come under discussion.
Nidec, a motor manufacturer, disclosed on the 28th that it was considering a large-scale impairment charge, after which its share price hit a limit-down. The article reports that the accounting misconduct issue has exacerbated the decline in the company’s share price and increased the risk of an acquisition.
The current market capitalization is approximately ¥2.7 trillion, down substantially from the peak of approximately ¥9 trillion in February 2021. The impairment loss is expected to be approximately ¥1 trillion, and it has also been reported that an extraordinary board meeting resolved to dismiss President Kishida Mitsuya (岸田光哉). Although no decisions have been disclosed at this stage, the company has acknowledged changes to its officers and its consideration of a large-scale impairment loss.
Oasis Management, known as an activist investor, has become a major shareholder of the company and is increasing its involvement in management, including by proposing director candidates. Experts believe that the more difficult the circumstances, the greater the possibility of an acquisition, while also indicating that establishing an internal control system is essential to maintaining the listing in practice.
The listing-maintenance process is also a focus. Nidec was designated a Security on Alert last year and aims to submit its internal control system confirmation report by October. Along with the size of the impairment loss, the timing of the securities report filing and the outcome of the audit opinion are key points of market attention.