As Japanese banks reduce their shareholdings in non-financial institutions according to new legislation Toyota Motor Corp., the world's third-largest automaker buys back 48.25 million shares for $1.19 billion.
The move was initiated by the new governmental law that will cap shareholdings by banks in non-financial institutions at 5 percent. The government wants to help banks to get out of bad debts and revive the economy.
Toyota bought back the shares at yesterday's closing price of 2,925 yen. The transaction was the company's second-biggest share buyback. Toyota's stock purchase is part of a plan approved by its shareholders to buy back as many as 170 million shares worth as much as 600 billion yen this business year.
Toyota shares rose as much as 1.9 percent to 2,980 yen in Tokyo.