Nissan planning to buy back shares


Carlos Ghosn is credited with turning around Nissan's financial performance

Staff and wires

TOKYO, Japan -- Japan's No. 3 carmaker Nissan said Monday it is seeking shareholder approval for a buyback of up to 75 million shares.

At Nissan's closing share price Monday of 998 yen -- a drop of 26 yen or more than 2.5 percent for the day -- the shares would be worth about $600 million.

But Nissan said it might spend more than that on the buyback -- up to 100 billion yen, or almost $800 million.

The buyback, which represents 1.7 percent of Nissan's shares outstanding, is subject to shareholders' approval at a meeting on June 20.

Nissan is owned 44 percent by France's Renault. Its profitability has been turned around since Renault executive Carlos Ghosn, nicknamed "le cost-killer", became president (in 1999) and last year chief executive of the Japanese carmaker.

Earlier Monday, Nissan reported a second year of record group net profit -- 372.26 billion yen (about $2.95 billion) for the business year ended in March.

That was up 12.4 percent from a year earlier.