Tokyo Gas unveils 40 bln yen share buyback, plans more next FY year

TOKYO, Jan 31 (Reuters) - Tokyo Gas 9531.T said on Friday it would buy back up to 40 billion yen ($259 million) of its own shares by the end of March and would continue large-scale buybacks next financial year as it strives to boost value for shareholders.

The company faces pressure from U.S. activist investor Elliott Management, which acquired a 5.03% stake in Japan's top city gas provider last year, urging the utility to divest parts of its extensive real estate portfolio to lift shareholder value.

"Our business portfolio management focuses on enhancing business synergy and efficiency while accelerating withdrawal from inefficient or low-synergy assets and businesses, including real estate," Chief Financial Officer Taku Minami told a news conference.

Tokyo Gas has been identifying low-performing assets, including from its vast real estate portfolio, to be sold to fund growth investments, President Shinichi Sasayama told Reuters this month.

Minami did not provide further details on the asset reshuffle, including the scale or specific assets and businesses targeted for possible divestment. However, he said the company would announce specific measures in March to achieve its goal of an 8% return on equity for the next fiscal year starting in April.

($1 = 154.7200 yen)