Elliott’s Target Sumitomo Unveils Plans for Shareholder Return
- Sumitomo targets at least 12% ROE, 40% total payout ratio
- Shares jumped 4.4%, after briefly surging as much as 7.6%
Sumitomo adverts in Tokyo.
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Japanese trading firm Sumitomo Corp. said it will buy back its stock and adopt a progressive dividend policy, bringing it in line with the other four major peers in an effort to boost shareholder returns.
The company will allocate ¥700 billion ($4.5 billion) of returns over the next three years, with a goal of total shareholder return ratio of 40%, the company said Thursday in a filing. The announcement comes after activist investor Elliott Management Corp. was said to have built a “large” stake in Sumitomo and shared with the company its views on ways to create shareholder value.