Nidec Shares Fall to Decade Low as Committee Finds Founder Liable in Accounting Probe

Nidec Corp. shares fell as much as 2.8% in early Tokyo trading to their lowest level since 2016 after an outside committee concluded that founder Shigenobu Nagamori and other current or former executives bear civil liability for damages linked to years of improper accounting. The motor manufacturer's market value has dropped to ¥2.1 trillion, down from almost ¥9 trillion less than six years ago, after losing more than a third of its value since late September following the sudden exit of CEO Mitsuya Kishida. The committee report also named former CEOs Jun Seki and Kishida, former Chairman Hiroshi Kobe, former President Hiroyuki Yoshimoto, former Senior Vice President Akira Sato, and current Chief Legal Officer and Head of Compliance Kazuya Murakami as bearing liability, with Nidec stating it would consider claims for damages based on each person's contribution. Nidec recorded a ¥519 billion operating loss for the year ended March after a ¥632 billion impairment, and is working to secure signoff from auditor PwC Japan—which previously withheld its opinion—and submit an internal controls report to the Tokyo Stock Exchange by Oct. 28 to avoid a delisting notice. Largest disclosed shareholder Oasis Management Co., which raised its stake to 9% last week ahead of Nagamori's direct holding, has urged Nidec's outside directors to hire financial advisers and seek preliminary, nonbinding proposals to protect against an unintended delisting.