Nomura Unveils Share Buyback Program

Shares of Nomura (NMR, 8604.T) surged on Wednesday after the Japanese brokerage house said that its board has approved a program to buy back up to 150 billion yen of shares ($1.38 billion) while concurrently agreeing to lower the company’s stake in Nomura Research Institute.

The repurchase program will run from June 19 to March 31, excluding the ten business days following the announcement of quarterly financial results, and have an upper limit of 300 million shares of common stock, or 8.6% of outstanding shares, according to a statement.

“Nomura plans to acquire treasury stock to raise capital efficiency and ensure a flexible capital management policy,” the group, whose annual shareholder meeting is scheduled for Monday, said in a statement late Tuesday.

Concurrently, the firm has also set out plans to sell about 101.9 million of its shares in Nomura Research Institute (NRI), a proposal that has been approved by the board. The move will reduce the company’s stake in Nomura Research Institute to 23.07% from 36.59%. The offer price in the self-tender process is 1,570 yen per share.

Nomura “plans to use the funds raised from the sale of NRI’s ordinary shares to enhance its corporate value through shareholder returns and investments to further grow its business,” the company said in a separate statement.

Tokyo-traded shares of Nomura, which posted a net loss of 100.4 billion yen ($907 million) following a 25% slump in net sales for the financial year that ended in March, jumped by more than 10% at the close of trading in Japan on Wednesday.

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