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.