TOKYO (Reuters) – Japanese toymaker Tomy Co on Wednesday said it would spend up to 6.7 billion yen ($56.10 million) buying back around 10 percent of its outstanding shares, including 4.6 percent from U.S. private equity firm TPG Capital Management LP.
Tomy in a statement said it would buy back up to 9.7 million shares to “improve its corporate and shareholder value.”
The toymaker also said it would pay 7.4 billion yen to buy back convertible bonds held by TPG.
TPG declined to comment.
Tomy’s relationship with TPG stretches back at least to 2007 when the private equity firm bought a 14 percent stake. TPG sold the bulk of its stake in 2009 to Japanese peer Marunouchi Capital Co, which is now Tomy’s biggest shareholder.
“While TPG had a stake in our company, we were able to build our global platform through acquiring the U.S. toymaker RC2 Corporation,” Tomy said in the statement.
Tomy bought RC2 in 2011 to help the Japanese toymaker compete against top global rivals such as Mattel Inc (