By Moses Akaigwe
Following the resolution of the board of directors on September 26, 2024, Nissan Motor Co., Ltd. (Nissan) announced the acquisition of its own shares from Renault S.A. (Renault) and the cancellation of its own shares under the provision of Article 165(3) and Article 178 of the Companies Act, respectively.
Nissan has received a notice from Renault offering to sell a part of Nissan shares (the “Offered Shares”), which are held in a French trust, and has decided to acquire 195,473,600 shares, which correspond to all the Offered Shares except the shares less than one unit, by making use of its right of first offer as agreed with Renault under the New Alliance Agreement. Nissan has decided to cancel all the acquired shares.
The transaction will be funded using Nissan’s net cash position. This decision is in line with Nissan’s commitment to enhancing shareholder returns and capital efficiency whilst maintaining the necessary financial resources to deliver Nissan’s business plans.
The current reacquisition is the third by Nissan, coming after two previous sales of Nissan shares on December 13, 2023, and on March 28, 2024, Renault Group