Recruit Holdings restructuring shares in buyback, offering

24 Aug 2016

Recruit Holdings, the global human resources company that owns Indeed.com, announced plans today (Aug. 24) to raise an estimated 252 billion Japanese yen ($2.5 billion U.S.) through a secondary stock offering and at the same time spend ¥30 billion  (about $300 million) to buy back some common shares.

Recruit, listed on the Tokyo Stock Exchange (TSE: 6098), announced it will buy back about 1.5 percent of its common shares, leaving a float of about 565 million. The shares traded at ¥4,135 ($41 U.S.) on Wednesday. The company’s board decided on the buyback in conjunction with the secondary offering of 61 million common shares. (Here’s that announcement.)

Recruit, which manages at least 23 businesses, including Indeed and real estate sites Suumo.jp in Japan and Movoto.com (among many other businesses), endured a one-fourth drop in its net income in Q1 of the current fiscal year (April-June, FY17). The prime cause of the slump was a substantial retreat in the sale of investment securities during the three months.

Separately, Recruit announced it would launch a business on Oct. 1 to loan money to small- and medium-sized businesses.

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Tariq Ahmed Saeedi

Tariq Ahmed Saeedi writes stories on sharing economies in Asia – particularly Japan, Taiwan, Vietnam, Korea, Pakistan, Bangladesh and Iran. He joined the AIM Group in January 2016. Tariq is also a spotter, monitoring global marketplace industry’s updates. He carries more than 15 years of writing experience. Tariq frequently contributes economic/tech news and analysis to a daily The News International and a magazine. He has also written features and interview articles for various other publications and some of his write-ups have been cited for references in reports by the World Bank and archived in Florida Institute of Technology’s library. Tariq has also narrated corporate website content for Audi importer in Pakistan and others. He started his career from a television’s current affairs department in 2003 and later joined the country’s premier news agency Pakistan Press International.