MALIBU, Calif. (AP) -- Toy maker Jakks Pacific Inc. said Friday that it has launched its offer to buy up to 4 million shares at $20 per share from stockholders. The company has said shareholders requested that the company buy back stock.
Stock buyback programs reduce the number of shares outstanding, which can boost per-share earnings and increase the value of shareholders' remaining stake. Buybacks can also reduce the possibility of takeover threats.
Investment firm Oaktree Capital Management had offered $20 per share last September to take the company private. Jakks initially rejected that offer, saying it undervalued the company. The stock had closed at $16 the day before Oaktree's offer.
But Jakks said last month that it had agreed to talk with Oaktree, which owned 5 percent of Jakks' outstanding stock as of March 31.
The company, which is based in Malibu, Calif., makes toys under brand licenses for Disney, Nickelodeon, Hello Kitty and others.
Jakks shares fell 12 cents to $17.83 in late afternoon trading Friday.