Convano Announces Major Share Buyback Program Worth ¥4.5 Billion

Convano's Strategic Share Buyback Initiative

Convano Inc., headquartered in Shibuya, Tokyo and led by President Akira Kamiyoshi, has recently made headlines with its ambitious decision to initiate a buyback program of up to ¥4.5 billion (approximately $42 million). This strategic move was approved during the board meeting held on August 24, 2026. The company has outlined two distinct approaches for executing this buyback: a private placement from DIMENTIONAL and open market purchases through the Tokyo Stock Exchange.

Details of the Buyback Program

The total number of shares involved in this buyback could reach as high as 45 million, equating to about 8.85% of the total outstanding shares as of June 30, 2026. The maximum total cost of ¥4.5 billion is set to facilitate this transaction, while the buyback period is planned from October 1, 2026, to March 31, 2027.

Two Methods of Acquisition

1. Private Placement: The company plans to acquire 37,289,600 shares (7.33%) from DIMENTIONAL via an off-market transaction. The total expenditure for this buyback from the private placement is capped at ¥3.7 billion. The purchase price is expected to be ¥100 per share but is subject to change, influenced by the market price on the Tokyo Stock Exchange leading up to the transaction's closure on September 29, 2026. The period for this acquisition will be from October 1 to October 30, 2026.

2. Market Purchase: In addition, Convano will aim to buy back 7,710,400 shares (1.52%) directly from the market. The total budget for this portion of the buyback is set at ¥771 million, utilizing the prevailing market price as the purchase basis, and this acquisition period will coincide from October 1, 2026, to March 31, 2027.

The dual approach taken for the share buyback is seen as a fair opportunity for both private and public shareholders, ensuring that everyone has a chance to benefit from this initiative.

Rationale Behind the Buyback

Convano emphasizes that returning profits to shareholders and enhancing capital efficiency are essential components of its corporate strategy. The shares being bought back are from DIMENTIONAL, which obtained these shares through the exercise of new stock options between July and August of 2025. DIMENTIONAL intends to sell off part of its holdings but is concerned about market impact, thus it will sell the remaining shares directly to Convano.

In addition to this, Convano has recently revised its stance on cryptocurrency and decided to liquidate its Bitcoin holdings, raising approximately ¥8 billion. The company plans to utilize this capital for shareholder benefits rather than holding onto it. The ¥4.5 billion buyback scheme is significantly funded through the capital recovered from cryptocurrency sales, minus any reserves related to prior bond repayment commitments.

Financial Impact of the Buyback

This initiative is projected to yield an approximate 9.7% enhancement in Earnings Per Share (EPS) due to the anticipated reduction in the total number of outstanding shares by 8.85%. While the total capital and cash reserves may decrease by this initiative, the firm reassures stakeholders that operational liquidity will remain secure.

Expected Outcomes and Future Steps

Upon completing the share buyback, Convano aims to promptly retire the acquired shares to ensure the funds are actively returned to shareholders. This aligns with the company’s objective of maximizing shareholder value without indefinitely holding onto repurchased shares. The retirement schedule and specifics will be disclosed as plans are finalized.

If the maximum buyback succeeds, it is anticipated that the largest shareholder, NT Company, will see its stake rise from 61.55% to 67.53%, giving NT the ability to effectively control corporate governance decisions, particularly during extraordinary resolutions.

The board meticulously weighs the implications of this decision on minority shareholders but ultimately supports the buyback as a means of improving shareholder returns and capital efficiency.

Upcoming Timeline

Following the board’s approval, a special general shareholder meeting is scheduled for September 30, 2026, to approve the private acquisition from DIMENTIONAL. The buyback initiatives will commence on October 1, 2026, while a separate stock consolidation plan will activate on November 1, 2026.

As a forward-thinking organization, Convano is committed to its core mission of creating new value and opportunities through innovative solutions in the AI and consulting sectors, continuously striving for sustainable growth in shareholder value.