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KYOTO, Japan – Nidec Corporation (TOKYO: 6594; OTC US: NJDCY) has reported that it did not repurchase any of its own shares during the initial period of its current buyback plan, which was authorized by its Board of Directors on January 24, 2024. The share repurchase program, which is in accordance with Item 1 of Article 459 (1) of the Companies Act of Japan, had outlined the potential buyback of up to 2 million common shares, representing 0.34% of the total number of shares issued and excluding treasury stock, with a total repurchasable amount of 11 billion yen.
The company’s repurchase plan was active from January 25, 2024, through January 31, 2024, during which time the company did not execute any share repurchases, resulting in a total repurchase amount of 0 yen. The share repurchase program is set to continue until May 24, 2024, providing the company with the opportunity to buy back shares within the approved timeframe.
Share buybacks are a common strategy used by companies to return value to shareholders, often indicating the company’s belief that its shares are undervalued. The repurchase of shares can also help to reduce the number of shares in circulation, which can potentially increase the value of remaining shares.
The information disclosed by Nidec Corporation is based on the trade date and is provided as a factual statement from the company’s press release. The lack of share repurchases in the initial period of the plan has been reported without any indication from the company regarding the reasons for the inactivity or any future intentions to execute the buyback.
Investors and market watchers may continue to monitor Nidec Corporation’s activities as the company proceeds with its buyback plan, which remains in effect until late May. The company’s decision not to repurchase shares during the initial period is a matter of public record, based on a press release statement.
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This story originally appeared on Investing
