Mitsubishi Corporation announces massive share buyback and tender offer

TOKYO - Mitsubishi Corporation (MC) has revealed plans for a substantial share repurchase program, including a tender offer and market purchases, with a total repurchase amount of up to 1 trillion yen. The decision, made during a Board of Directors meeting on Thursday, aims to enhance capital efficiency and deliver shareholder returns in line with the company’s "Corporate Strategy 2027."

The repurchase program will acquire up to 689 million shares, representing around 17% of the outstanding shares, excluding treasury stock. The repurchase period is scheduled from April 4, 2025, to March 31, 2026. MC will use 230 billion yen for the tender offer and the remaining 770 billion yen for market purchases on the Tokyo Stock Exchange.

The tender offer, priced at 2,291 yen per share, reflects a 10% discount from the lowest average closing price of the stock over various periods up to April 2, 2025. The company has secured the participation of significant shareholders Tokio Marine & Nichido and Mitsubishi Logistics, which have expressed their intentions to tender their shares.

MC’s financial stability is expected to remain robust, with a projected net debt-to-equity ratio below the upper threshold of 0.6x even after the repurchase. The company plans to continue disciplined investments to realize its growth strategy while effectively utilizing financial leverage.

In addition to the share repurchase, MC has also resolved to cancel all treasury stocks acquired through this program by April 30, 2026, to further improve return on equity and benefit shareholders.

The move comes after MC’s policy of progressive dividends and flexible share repurchases, which was reinforced in its "Midterm Corporate Strategy 2024" and the newly released "Corporate Strategy 2027." These policies aim to balance financial soundness, stable dividend growth, and market expectations for shareholder returns.

This announcement is based on a press release statement.

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