Nippon Steel to tender shares in subsidiary buyback

Nippon Steel Corporation (TSE: 5401) announced it will tender all of its holdings in Osaka Steel to the subsidiary’s planned self-funded share buyback. The tender offer price has been set at ¥2,450 per share. Osaka Steel's decision comes following a review of its capital efficiency and in response to correspondence from Strategic Capital. Despite concerns raised by Strategic Capital, Osaka Steel is proceeding with the buyback as it believes the repurchase will help improve capital efficiency, even if it doesn't allow the company to meet the minimum standards for being listed on the Tokyo Stock Exchange. The total cost of the buyback is estimated at ¥22,077,479,000, with a planned purchase of 9,000,000 shares.