Dai Nippon Printing surges on its largest ever share buyback plan

Kitco Media
By Reuters
Published:
Updated:
Reuters
TOKYO, Feb 10 (Reuters) - Shares of Dai Nippon Printing Co Ltd (DNP) surged on Friday after the Japanese automotive battery component supplier said it planned to conduct a share buyback larger than any of its previous repurchases. DNP shares closed the morning session up 12.6% at 3,585 yen, far outperforming the Nikkei average's 0.5% gain. The company said on Thursday it planned to carry out the largest ever share buyback to improve its capital efficiency, without giving the date or size of the repurchase.


The details will be laid out in a new business strategy set to be unveiled in March, a company spokesperson said.


DNP is among hundreds of listed Japanese companies undervalued relative to their assets.


To address chronic stock underperformance, the company has been reducing cross-shareholdings, a controversial practice of business partners owning each others' shares. Sources familiar with the matter told Reuters last month that hedge fund Elliott Management Corp has built a "significant" stake in DNP.
(Reporting by Kiyoshi Takenaka; Editing by Janane Venkatraman)

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