JAPAN TODAY

 

 
TOKYO — Japanese car maker Nissan says it will buy back up to 400 billion yen worth of its own shares by the end of the year.

The operation, announced after a board meeting, will start on Monday and run until December 22, it said.

The buyback will not lead to any “material change” in the shareholding balance in Nissan’s alliance with French partner Renault, it added.

Separately, Renault said that it would sell Nissan shares as part of the program to maintain its current 43.4% stake in Nissan, which in turn owns 15% in the French automaker.

“Considering that this buyback program will create value for all Nissan shareholders, including Renault, the board of directors of Renault approved participating in this transaction,” the French company said, adding it had been informed of Nissan’s decision on Friday.

Renault-Nissan alliance chief executive Carlos Ghosn said the decision to return cash to shareholders was prompted by the group’s strong cash flow position.

“Return to shareholders is one of Nissan’s key objectives,” he said in the Nissan statement.

Renault-Nissan is the world’s fourth-biggest car maker with 8.53 million unit sales in 2015.

The news came after the close of the Tokyo stock exchange on Friday, where Nissan shares ended slightly higher just before the announcement.



© 2016 AFP