Canon Inc. announced plans to buy back up to 50 billion yen ($660 million Canadian) worth of its own shares over the next few weeks. Large corporations typically make these investments when executives feel the stock is undervalued on the open market.
The $660 million buy back, amounting to just 1.4 percent of its outstanding shares (17.4 million shares), also indicates the size Canon.
With more than 25,000 global employees, Canon in its 2011 fiscal year generated net sales of 2,160,732 million yen, or $28.5 billion Canadian dollars. The company stated its share buy back is aimed at “improving capital efficiency and ensuring a flexible capital strategy that provides for such future transactions as share exchange.”
The company will purchase the shares between June 5 and July 27.
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