Toshiba says to buy back $6.33 billion in shares

Tokyo (News Service) – Toshiba Corporation proclaimed a share buyback of over 700 billion yen ($6.33) billion. This followed up on the undertaking to share the bonanza from an $18 billion sale of its memory chip business which came it its verdict this month.

On Wednesday the company shares grew to 7 percent after the news telecast. However, the company had agreed to honor the shareholders after reaching the sales limit of chips units to a chamber directed by the United States private equity firm Bain Capital.

As per the analysts, the Toshiba growth was on a limited lookout lacking semiconductor unit and the medical business that went out of its control. However, the company announced that it preferred dividend payments and the likelihood of putting in further efforts to enhance the shareholder return.

In the past years, the company had canceled dividends and approached the mark of an accounting scandal and herculean cost overruns in the U.S nuclear business Westinghouse. While it kept away the removal with a $5.4 billion share issue to the investors overseas last year.

“Even after repurchasing 700 billion yen in our shares, and although we no longer hold a memory business or overseas nuclear business, we assume we can maintain a healthy capital ratio,” – said the analyst in a statement.

The company added that it would take a keen interest towards the timing and method of the repurchases while it targeted at carrying them at the earliest.

 

by Sawan Kumar on June 13, 2018

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