Toshiba has announced that the company will be buying back $6.3bn (£4.71bn) worth of stocks that has seen its share price increase as much as 11 percent.
The said decision was made as part of a pledge that was made by Toshiba to share the proceeds of the $18bn sale of its memory chip business to Bain Capital, a private equity firm from the United States, which closed earlier this month.
The said announcement has resulted to a wave of relief for some, who were waiting for the decision as a sign of positive news for the firm after it started selling off its chip unit and some other assets.
The tech company is also making history, as its decision for the repurchase is reportedly the biggest ever buyback that was planned on the Japanese market. Earlier last Wednesday, Toshiba was able to achieve an intra-day high amounting to ¥351, prior to slightly dropping to an overall increase of 6.7 percent by the close of the market.
Some investors were planning to raise the said issue of Toshiba keeping too much cash from its recent sales at the annual shareholder meeting of the company later this month.
Recently, the company itself has only come out of a period of financial difficulty, narrowly avoiding a de-listing after an accounting scandal and enormous cost overruns at Westinghouse, its US nuclear business.
¥600bn in fresh capital was raised by Toshiba last December 2017 to sustain its balance sheet. According to information from MarketWatch, foreign investors who participated in the capital raising are currently sitting on a 28 percent gain following the announcement that was released last Tuesday.
Recently, Toshiba also sold a majority stake in its personal computer business to Sharp, Japanese electronics maker, in a deal which briefly caused the share price of Sharp to rise before dropping to a 17-month low.