Tokyo: Sony Corp. has unveiled another record share buyback just months after completing a similar program, underscoring Chief Executive Officer Kenichiro Yoshida’s commitment to reviving an ailing stock price in a tumultuous environment.
The Tokyo-based company will purchase as much as 4.8% of its outstanding shares, spending up to 200 billion yen ($1.8 billion), it said in a statement. The repurchase period begins Friday and lasts till 31 March. That follows a February announcement it intended to repurchase 2.4% of its stock for 100 billion yen, then the largest buyback in its history in terms of value.
Buybacks are becoming Yoshida’s preferred tool to thwart pressure from shareholders as he navigates a deteriorating economic and market environment. His company is grappling with a drought of blockbuster titles for the aging PlayStation 4, while demand for smartphones plateaus. Escalating tensions between the US and China now also cloud the global economic outlook.
Sony’s shares are barely changed this year, lagging the benchmark TOPIX’s 3% gain.
“This is a message that investors shouldn’t sell Sony just because the rest of the market is falling," said Makoto Kikuchi, founder of Myojo Asset Management Co. “It’s also a message that says Sony is still cheap compared with the company’s actual earnings."
This story has been published from a wire agency feed without modifications to the text.