The National  Memo Logo

Smart. Sharp. Funny. Fearless.

Monday, December 09, 2019 {{ new Date().getDay() }}

Tokyo (AFP) – Toyota is to buy back as much as 1.89 percent of its shares for 360 billion yen ($3.5 billion), raiding a growing corporate cash chest for the first time in five years, the Japanese carmaker said Wednesday.

The world’s largest automaker said it will purchase up to 60 million shares over a 10-month period following the next shareholders’ meeting in June.

It will cancel half of them, to avoid sparking fears of dilution in future share sales, the company said in a statement.

The other shares will be handed over to a trust that will manage them on behalf of a new foundation to “support efforts to address mobility challenges around the world” such as traffic jams and better use of energy, it said.

The last Toyota share buy-back was in February 2009, a company spokeswoman said, adding it had repurchased 930,000 shares for 2.8 billion yen at the time.

Observers said it was a way for Toyota to invest its large cash pile into its own shares and to increase value.

“The company has improved its business performance greatly thanks to a weaker yen and now has abundant cash,” said auto analyst Tatsuya Mizuno. “By using the cash to buy back its own shares Toyota could show the management’s confidence to investors that they are worth pouring cash into.”

Toyota shares rose 1.09 percent to 5,621 yen ahead of the announcement on Wednesday.

AFP Photo/Brendan Smialowski

Advertising

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

By Jenna Zucker and Gabriella Borter

BUFFALO, N.Y. (Reuters) -A white teenager who killed 10 people in a racist attack at a western New York grocery store in a Black neighborhood had been taken into custody last year and given a mental health evaluation after making a threat at his high school, authorities said.

Keep reading... Show less

The privilege of beholding the corals of Belize, the second largest reef system on earth, is a complete marvel that can never be taken for granted. The school of nine squid in perfect alignment that stared at us like transparent sentinels ,the green barracuda that floated as if in suspended animation, looking for prey. Those moments of utter awe were soul transformative not only for a child, but also for parents nurturing a young human to the ultimate reason to exist on this earth, to care for life.

Over the next few years, a battle was waged between environmentalists and those who saw dollars in the form of oil extraction in the reef. Thankfully on December 1, 2015, right after the Cop21 Paris Climate Accord, Belize made the tremendous decision to ban drilling outright -- and is working hard to restore coral. The same cannot be said for many other fragile parts of the world particularly the warming Arctic, where Russia has a near stranglehold of more than half the Arctic Ocean.

Keep reading... Show less
{{ post.roar_specific_data.api_data.analytics }}