The Japanese company, housing a couple of brokerage companies, Monex Group Inc (TYO:8698) has announced that it will be executing a share buyback plan in the coming weeks. The shares of the company traded flat on the Tokyo Stock Exchange on Thursday.
Monex Group Inc (TYO:8698) will be purchasing up to 5 million shares of common stock in the company with an aggregate value of up to ¥1.65 billion ($1.35 million). This caps the purchase price at about ¥330 ($2.71) per share which is about 6 percent higher than today’s market close at ¥311.
The purchase period is to last about a month starting from tomorrow and ending on the 7th of August 2015. The announcement comes after the value of the stock dropped about 16 percent since the 2015 peak registered in early May.
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The rationale behind the purchase is for Monex Group Inc (TYO:8698) to provide an additional return to its shareholders.
According to the company’s announcement, “The firm has set a target of 75 percent of total return ratio on a multi-year basis. In addition to dividends, share acquisition is flexibly implemented.”
The share buyback comes as the firm has been under performing its peers on the Japanese market.