JVCKENWOOD announces €30 bn convertible bond offering, share buyback

JVCKENWOOD Corporation announced plans to issue €30 billion in zero-coupon euro-yen denominated convertible bonds due 2030, following a board resolution on November 13, 2025. This financing aims to support growth investments, including approximately yen 15 billion for M&A to expand "Communications Systems Business" and "Overseas OEM Business" by March 2028, and about yen 10 billion for capital expenditures and product development in the S&S and M&T sectors by March 2029.

In conjunction with the bond issuance, JVCKENWOOD will repurchase up to 5,000,000 of its common shares, totaling up to yen 5 billion, between November 14, 2025, and December 23, 2025. This buyback includes an off-auction share repurchase transaction (ToSTNeT-3) on November 14, 2025, for 3,513,700 shares at yen 1,423 per share, amounting to yen 4,999,995,100. The repurchase aims to mitigate short-term stock supply-demand impacts from the bond offering and improve capital efficiency.

The convertible bonds feature a contingent conversion clause, restricting conversion unless the stock price exceeds 130% of the conversion price for a specified period, emphasizing a debt-like instrument. The company also announced the full acquisition of San Luis Aviation, Inc., a US-based IP radio business, by October 8, 2025, as part of its growth strategy to expand its "Communications Systems Business" in North America.