Sony’s official statement read, “Depending on market trends and other factors, all or part of the planned repurchase may not be completed”
Sony has announced its plans to buy-back shares worth ¥100 billion (approx $910 million). The move, as per the company, is aimed at boosting shareholder returns. It is to be noted here that there was a recent decline in prices of its shares.
An official statement released by the brand read, “Sony believes that continuously increasing corporate value and providing dividends are essential to rewarding its stockholders. In consideration of its financial condition and the price of its common stock, among other things, Sony has decided to repurchase its own shares.”
Increase in share prices after the announcement
The after math of Sony’s announcement to buy-back its shares resulted in up to 6.5 per cent increase in its share prices. Sony said that it is looking forward to buy-back as much as 2.6 per cent of the total shares. However, this is not the first time that Sony is buying back its own shares.
The company had last bought ¥6.3 billion worth of its own shares back in 2004. The 2004 shares buy-back was related to Sony’s decision to completely merge its PlayStation subsidiary into the parent company.
Bloomberg quoted Hideki Yasuda, analyst at Ace Research Institute, as, “The buyback itself was a surprise. Management probably thinks Sony’s share price is undervalued.”
Sony’s official statement read, “Depending on market trends and other factors, all or part of the planned repurchase may not be completed.”