Activist investor Elliott Investment Management has taken a significant position in Japanese shipping group Mitsui OSK Lines (MOL), aiming to drive improvements in shareholder returns and capital efficiency, according to a report by Reuters.

News of the investment sent Mitsui OSK’s shares sharply higher, with the stock rising around 12% following confirmation of Elliott’s involvement. While the exact size of the stake has not been disclosed, the hedge fund said it believes the company is materially undervalued.

Elliott is expected to push for a review of Mitsui OSK’s asset base, including its real estate holdings, and may advocate for the potential re-listing of Daibiru, a property subsidiary that was taken private in 2022.

Mitsui OSK operates a fleet of more than 900 vessels across bulk shipping, tankers, and ferries, and has been seeking to balance shareholder returns with long-term growth investment in what remains a cyclical industry. The company is due to unveil a new management plan later this month.