Activist hedge fund Elliott Investment Management has acquired a 4-5% stake in Japanese regional utility Kansai Electric Power Co, and is now targeting the company’s non-core assets to unlock shareholder value, according to a report by Bloomberg.

The fund cites au unnamed source familiar with the matter as revealing that Elliott has identified over JPY2tn ($13.5bn) in assets outside Kansai Electric’s core energy business, including real estate and an equity stake in Kinden Corp.

Elliott is pushing for annual sales of JPY150bn in non-core assets, with proceeds earmarked for dividends and share buybacks. The hedge fund has suggested raising Kansai Electric’s dividend from JPY60 to JPY100, with shares surging by as much as 9.5% in Tokyo following the news.

Japan’s regional utilities have recently attracted activist interest, with investors seeking to monetise undervalued property holdings on corporate balance sheets. Elliott previously took a stake in Tokyo Gas Co, advocating for improved capital efficiency through asset sales.