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Tokyo Exchange Puts Nidec on Special Alert and Schedules Index Removals as Shares Plunge

The actions reflect unresolved audit concerns at the motor maker's overseas units.

Overview

  • Nidec was designated a security on special alert, with about one year to fix governance issues or risk delisting, and will be removed from Topix on November 4 and the Nikkei 225 on November 5, with Ibiden set to replace it in the Nikkei.
  • The stock fell by its daily 500-yen limit to 2,070.50 yen, marking the lowest level since April after the exchange's actions.
  • An independent committee is investigating suspected improper accounting at a Chinese subsidiary tied to a roughly 10 million yuan payment to an unidentified supplier.
  • PwC Japan withheld an audit opinion due to insufficient evidence and the exchange said the probe’s outcome could require corrections to past financial statements.
  • Nidec withdrew its fiscal-year forecast, suspended its interim dividend, and canceled a buyback, while analysts warn index deletions could force selling and increase the stock’s real float.