Nintendo to spend £739 million to buyback shares
Nintendo have announced that they will spend as much as 125 billion yen (£739,250,000) to buy back company shares.
The reasons behind such acquisition are clarified as being “to improve capital efficiency as a flexible capital policy in accordance with changes in the business environment.”
Such cost will see them acquire 10 million of their own shares, amounting to 7.82 percent of those outstanding outstanding, with announcement coming some months after the death of ex-Nintendo president Hiroshi Yamauchi who had retained an 11 percent stake in the company.
Whilst Nintendo haven’t respected his heirs, they shared their expectation that due to inheritance taxes they will sell these shares back to the company.