Dai Nippon Printing surges on its largest ever share buyback plan

Dai Nippon Printing Co

10/02/2023 03:38

TOKYO, Feb 10 (Reuters) - Shares of Dai Nippon Printing
Co Ltd (DNP)  7912.T  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  .N225  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)
 ((kiyoshi.takenaka@thomsonreuters.com; +81 3 4563 2788;))