Nippon Television Shares Soar After Share Buyback Announcement

Nippon Television Holdings shares experienced a significant surge in value following the company's announcement of a share buyback and proposed changes to its dividend plan, aimed at benefiting foreign shareholders.

Impressive Increase in Share Value

Recently, Nippon Television Holdings' shares rose by a remarkable 23%, reaching 2,151.0 yen, and hitting the day's limit.

Share Buyback

The Japanese media company, which is also the parent company of Studio Ghibli animation studio, revealed its intention to repurchase its own shares up to Y7.00 billion ($47.8 million) by the end of May.

Favorable Changes for Foreign Shareholders

Compliance with Foreign Ownership Restrictions

Japanese regulations mandate that broadcasters limit foreign ownership to below 20%. However, with this planned change, Nippon Television Holdings seeks to offer greater flexibility for the buyback of shares.

Voting Rights and Dividends for Foreign Shareholders

Presently, once foreign ownership of Nippon Television exceeds 20%, new foreign shareholders are excluded from the company's shareholder registry. Consequently, they are denied both voting rights and dividends. However, the proposed amendments would enable the company to distribute dividends to foreign shareholders who are not listed in its shareholder registry.

Steady Financial Performance

Moreover, Nippon Television Holdings disclosed impressive financial results for the nine-month period ending on December 31. During this period, their net profit increased by 22% to Y33.17 billion, while revenue rose by 0.2% to Y306.22 billion.

This upward trajectory in both financial performance and strategic initiatives highlights the company's commitment to enhancing shareholder value.