Monday, August 20, 2018
News

Toshiba sets $6.3 bln share buyback with proceeds of chip unit sale

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

TOKYO | Wednesday, Jun 13 2018 IST
Toshiba Corp unveiled a higher-than-expected $6.3 billion stock buyback that sent its shares up as much as 11 percent, as the Japanese firm followed up on a pledge to share proceeds from an $18 billion sale of its memory chip business.

Its announcement on Wednesday that about 700 billion yen ($6.33 billion) of its shares will be repurchased allayed concerns Toshiba may keep more of its cash, given its uncertain outlook after the disposal of the chip unit and other assets.

Toshiba had promised to reward shareholders after the sale of the chips unit to a consortium led by U.S. private equity firm Bain Capital closed earlier this month.

Investors, including activist hedge funds, were expected to press the company at its annual shareholders' meeting on June 27 to share the cash raised from the unit's sale.

"The scale of the buyback exceeds what some in the market expected, which was around 600 billion yen. The timing of the announcement is earlier than we had expected, so the first impression is positive," Mizuho Securities analyst Takeshi Tanaka said in a note to clients.

Toshiba shares hit an intra-day high of 351 yen on Wednesday, before erasing some of the gains to be up 6.7 percent at 337 yen.

The company had in recent years cancelled dividend payments and came close to a delisting following an accounting scandal and massive cost overruns at its U.S. nuclear business Westinghouse.

It avoided the delisting with a $5.4 billion share issue to overseas investors, including activist funds, late last year.

The company said it was considering dividend payments and the possibility of further moves to bolster shareholder returns.

Toshiba said it will carefully consider the timing and method of the share repurchases but aimed to carry them out as soon as possible. ($1 = 110.6600 yen) REUTERS RSU 1154

-- (Reuters) -- C-1-1-DL0386-1400870.Xml

Loading...
 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
TRENDING TOPICS
 
 
 
CITY NEWS
MORE CITIES
 
MORE ASIA NEWS
Shah Mahmood Qureshi is Pakistan's new F...
China regulator asks financial instituti...
Infiltration on despite Pakistan's pledg...
Pompeo to visit Islamabad for talks with...
Bhutan announces dates for 3rd general e...
Pakistan's ruling party appoints Arif Al...
More...
 
INDIA WORLD ASIA
Man arrested for killing friend, his mot...
England bundle out India for 329 in firs...
846,680 people in relief camps: Kerala C...
GDP back series data unofficial estimate...
Illustrations on vintage postcards, lett...
Kerala diaspora in Middle East helps flo...
More...    
 
 Top Stories
Kim Kardashian shows off curves in ... 
Saudi Arabia warns possible floods ... 
Trump once again compares Russia pr... 
Little Mix singer's strong message ... 
Kajol to go back to college with 'H... 
Pakistan welcomes Afghanistan's cea... 
30-year-old man dies of mysterious ... 
SP workers should come forward to h...