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KYOTO - Nidec Corporation (TOKYO:6594; OTC US:NJDCY), the $19.4 billion Japanese motor manufacturer, announced Thursday it has discontinued its share repurchase program that was authorized by its Board of Directors on May 27, 2025. According to InvestingPro analysis, the company appears undervalued at current levels.
The Japanese motor manufacturer revealed that no shares were repurchased under the program, which had authorized the company to buy back up to 13 million shares, representing 1.13% of total shares issued, for up to 35 billion yen through May 27, 2026. The company maintains a GOOD Financial Health Score of 2.73 on InvestingPro, with solid profitability metrics.
The decision to halt the repurchase program comes amid ongoing investigations by a Third-Party Committee regarding suspected inappropriate accounting practices involving Nidec and its group companies, as mentioned in the company’s Annual Report submitted on September 26.
Nidec explained that it refrained from repurchasing shares since the program’s May 28 start date primarily because the company possessed material non-public information and because "the occurrence of events subject to the above investigations has been confirmed in the Company."
The motor maker indicated that if the investigations reveal any material misstatements requiring amendments to financial statements from previous fiscal years, it intends to take appropriate measures, including amending previous or current securities reports.
The announcement was made based on a press release statement issued by the company following a Board of Directors meeting held on Thursday. Investors should note that Nidec is scheduled to report its next earnings in 4 days, on October 27, 2025. Get deeper insights and exclusive financial metrics with InvestingPro.
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