Suntera (Cayman) Ltd., a trustee of ECM Master Fund, was identified as the buyer of the stake in a filing by Nissan. Interestingly, ECM Master Fund was cited in an unrelated filing from 2021 as being managed by Effissimo Capital Management Pte, a Singapore-based hedge fund known for buying into distressed companies.

The acquisition evoked a sense of deja vu, given Effissimo and Suntera famously worked on the takeover of Toshiba Corp. in 2021, one that ended in the resignation of the electronics maker’s chief executive officer and marked a landmark moment for corporate accountability in Japan.

The activist investors’ involvement in Nissan fueled a rally in its shares amid speculation the automaker may embark on structural reforms to fix its ailing business, said Ikuo Mitsui, a fund manager at Aizawa Securities Co.

The jump in shares is a remarkable turnaround for Nissan’s stock, which plunged last week after the carmaker announced plans to slash jobs and cut production capacity by a fifth, and lowered its operating income forecast by 70%.

Nissan said in a statement that the company is “continuously engaging with institutional investors and analysts from securities companies,” while adding that it’s not in a position to identify whether the stake acquisition was indeed done by Effissimo.

Representatives for Effissimo didn’t respond to an email seeking comment.

Effissimo has also bought into UACJ Corp. and Sanken Electric Co., besides raising holdings in companies including Dai-ichi Life Holdings Inc. and Fudo Tetra Corp. Such campaigns in Japan have become increasingly common over the past decade. 

Elliott Investment Management has built sizable stakes in Sumitomo and SoftBank Group, while Oasis Capital earlier this year called for a governance overhaul at Japanese drugstore chain Ain Holdings Inc.

Though their styles differ, Effissimo and Suntera were both founded by the disciples of Yoshiaki Murakami, the father of activist investing in Japan.

Effissimo became Toshiba’s top shareholder in 2017 when the company was reeling from a massive writedown on its nuclear power business.

Nissan’s shares climbed as much as 20.6% before paring the gain to about 13%. The company’s short interest stood at 21% of its free float as of Friday, making it the third-most shorted stock on the Nikkei 225 Stock Average, according to data from S&P Global.

Nissan said last week that it now sees its operating income plunging to just ¥150 billion ($976 million) in the fiscal year ending in March, down 70% from its previous forecast. The management also lowered its revenue outlook by more than 9%, meaning it now expects virtually no growth for the year.

Chief Executive Officer Makoto Uchida told investors that Nissan has been affected “not only by external challenges, but also by our specific issues,” alluding both to the breakneck rise of Chinese automakers and Nissan setting overly ambitious sales targets.