Nidec Board Authorizes Share Repurchase Plan
Nidec (TOKYO:6594; OTC US:NJDCY) announced that its Board of Directors approved a share repurchase plan during a meeting on May 24, 2024. The company may repurchase up to 5 million shares, equivalent to 0.87% of its total issued shares, excluding treasury stock. The total repurchasable amount is capped at 35 billion yen. This repurchase is aimed at maintaining financial discipline and enabling agile capital management in response to market trends or changes in the business environment. The repurchase period spans from May 27, 2024, to May 26, 2025. As of April 30, 2024, Nidec had 574,598,568 shares issued and 21,685,900 shares held in treasury.
- The share repurchase plan is set to enhance shareholder value by reducing the number of shares in the market.
- The repurchase allows for agile capital management, helping the company respond quickly to market fluctuations.
- The plan demonstrates financial discipline, showing the company's commitment to maintaining a strong balance sheet.
- The substantial repurchase amount of 35 billion yen indicates strong liquidity and financial health.
- The repurchase of 5 million shares, which is only 0.87% of total shares, may have a impact on overall market perception.
- The allocation of 35 billion yen for repurchase could limit funds available for other investments or projects.
- Share repurchases can sometimes be perceived as a company having growth opportunities, leading to mixed investor perceptions.
(Repurchases of Shares Pursuant to Item 1 of Article 459 (1) of the Companies Act of
Reason for Share Repurchase
Our priority issue is to secure financial discipline. However, we intend to enable agile capital management as necessary in response to our stock price diverges significantly from market trends more than expected or changes in the business environment.
Details of Authorized Share Repurchase Plan
- Class of shares: Common stock
-
Total number of shares that may be repurchased: Up to 5,000,000 shares
(0.87% of total number of shares issued, excluding treasury stock) -
Total repurchasable amount:
35 billion yen - Period of repurchase: From May 27, 2024 through May 26, 2025
Reference
Total number of shares issued and outstanding shares held in treasury as of April 30, 2024:
- Total number of shares issued (excluding treasury stock): 574,598,568 shares
- Shares held in treasury: 21,685,900 shares
Cautionary Statement Concerning Forward-Looking Information
This press release contains forward-looking statements regarding the Company’s current intent, plans, expectations and estimates. Such forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties. Actual results may differ materially from those described in such forward-looking statements as a result of various factors, including, but not limited to, available funds, future alternative uses for cash, future competing investment opportunities, and general economic, business and market conditions. The Company assumes no obligation to, and does not currently intend to, update these forward-looking statements, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240523487795/en/
Teruaki Urago
General Manager
Investor Relations
+81-75-935-6140
ir@nidec.com
Source: Nidec Corporation
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