Nidec's Board of Directors has given approval for a share repurchase program.
In a move aimed at enhancing shareholder value, Nidec Corporation, a leading Japanese motor manufacturer, has announced a new share repurchase plan. The plan, authorised by the Board of Directors, is set to repurchase up to 13 million shares, amounting to 35 billion yen, over the period from May 28, 2025, to May 27, 2026.
The decision to initiate the repurchase plan comes amidst challenging global economic conditions, as evidenced by Nidec's Q1 2025 financial results, which showed a decline in profit and revenue. The company's strategic move to buy back shares indicates a commitment to create value for its shareholders, despite the recent softness in performance.
The timing and form of the buyback announcement may also be attributed to ongoing additional investigations and delays in financial reporting for the fiscal year ending March 31, 2026. These investigations could have contributed to the need to maintain market confidence, as the repurchase plan is in accordance with Item 1 of Article 459 (1) of the Companies Act of Japan.
The cancellation of a takeover bid for Makino Milling Machine after a court loss may have also impacted capital allocation decisions, including share repurchases. Furthermore, the CEO has stated that tariffs and macroeconomic factors have not altered Nidec’s merger and acquisition strategy, implying that repurchases serve as an alternative use of capital amidst these broader strategic continuities.
The repurchase will consider factors such as funds for medium- to long-term growth investments, current cash position, stock price levels, and the status of total shareholder returns. The goal is to achieve a total return ratio of 50%. As of April 30, 2025, the total number of shares issued (excluding treasury stock) by Nidec Corporation is 1,146,307,799 shares.
For further information, Teruaki Urago, General Manager of Investor Relations at Nidec Corporation, can be contacted. It is important to note that this announcement contains forward-looking statements, and actual results may differ due to various factors.
The repurchase is for common stock, and the plan allows for a flexible implementation of share repurchases. The repurchase period starts on May 28, 2025, and ends on May 27, 2026.
In the face of challenging global economic conditions, as revealed by Nidec Corporation's Q1 2025 financial news, which demonstrated a decrease in profit and revenue, the company has strategically decided to invest in shareholders by initiating a share repurchase plan. This move, involving the purchase of up to 13 million shares for 35 billion yen, is a testament to their commitment to enhance shareholder value, despite the temporary softness in business performance. The plan, authorized by the Board of Directors, will be executed in the cloud, using a flexible approach, with the repurchase period spanning from May 28, 2025, to May 27, 2026.
