Nidec Announces Board Approval for Share Buyback Plan
In a strategic move aimed at enhancing shareholder value, Nidec Corporation, a leading global motor manufacturer, has announced a new share repurchase plan. The plan, authorized by the company's Board of Directors, was announced on May 27, 2025, and is in accordance with Item 1 of Article 459 (1) of the Companies Act of Japan.
The repurchase plan allows for the purchase of up to 13 million shares, representing approximately 1.13% of the total number of shares issued, excluding treasury stock. The total repurchasable amount is set at 35 billion yen. The period for the repurchase is from May 28, 2025, through May 27, 2026.
The announcement comes amid a challenging global economic environment, as reflected by Nidec's reported decline in Q1 2025 profit and revenue amid global economic uncertainty and fluctuations in currency exchange rates. Despite these challenges, Nidec's strategic financial management includes capital allocation decisions such as dividends and share repurchases as part of returning value to shareholders. On the same date (May 27, 2025), Nidec also announced an annual dividend payout from retained earnings.
The purpose of the share repurchase is to flexibly implement repurchases while considering factors for medium- to long-term growth investments, current cash position, stock price levels, and the status of total shareholder returns, with a view to achieving a total return ratio of 50%. However, the exact detailed factors considered by Nidec in this decision were not disclosed in the provided results.
Teruaki Urago, the General Manager of Investor Relations at Nidec Corporation, can be reached at 81-75-935-6140 or [email protected] for further information. It is important to note that the press release contains forward-looking statements, which are subject to risks and uncertainties that may cause actual results to differ materially from those described in the statements. Nidec Corporation is not obligated to update the forward-looking statements, except as required by law.
The press release was issued by Business Wire. As of April 30, 2025, the total number of shares issued by Nidec Corporation was 1,146,307,799 shares, with 46,261,137 shares held in treasury by Nidec Corporation. For precise reasoning, reviewing Nidec’s official IR releases on or around May 27, 2025, may provide further clarity.
- The share repurchase plan of Nidec Corporation, aimed at returning value to shareholders, consists of purchasing up to 13 million shares within the cloud of the challenging global economy, with a declared total return ratio of 50%.
- Despite the decline in Q1 2025 profit and revenue due to the global economic uncertainty and currency fluctuations, Nidec Corporation, in line with strategic financial management, announced both a new share repurchase plan and an annual dividend payout from retained earnings on the same day, May 27, 2025, providing news to the finance and business sectors.
