(Bloomberg) -- KDDI Corp. said it plans to buy back as much as ¥213.5 billion ($1.4 billion) worth of its own shares from Toyota Motor Corp. at ¥3,896 per share.

Japan’s No. 2 telecom company separately said on Friday it plans to cancel 4.81% of its shareholdings on May 20. Toyota will tender its shares in KDDI’s buyback offer, the company said.

More Japanese companies are conducting share buybacks and unwinding cross-held shares to meet growing scrutiny over corporate governance issues and shareholder returns.

Toyota gave a tepid outlook for the year when it reported earnings earlier this week, as the weak yen weighs on the cost of buying raw materials to make cars. The carmaker also said it would buy back up to ¥1 trillion of its own shares, about 3% of the total. The sale of KDDI may help it with such transactions.

Toyota’s shares have climbed 32% so far this year.

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