Shikoku Electric becomes 1st to use treasury stock system.
Shikoku Electric Power Co. said Monday it will buy back 10 million, or 3.6%, of all issued shares by next June under a treasury stock system introduced by the government the same day.
The power supplier to the western main island of Shikoku has set aside 20 billion yen for the share buyback, the first by a Japanese company to do so since the removal of restrictions on reacquisition of issued shares, according to company officials.
Previously, companies were allowed to buy back issued shares only for retirement or stock options.
Shikoku Electric said it will retire part of the reacquired shares and use the remainder for equity swaps designed to strengthen capital tie-ups with affiliated companies.
Financial institutions have offered to sell their holdings as part of their moves to liquidate cross-shareholding ties with corporate clients, a Shikoku Electric executive said.
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|Publication:||Japan Energy Scan|
|Date:||Oct 8, 2001|
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