Toys R Us Plans Share Buyback, Japan IPO

Toys R Us Inc. said it plans to buy back as much as $1 billion of stock and take its Japanese unit public in the first half of this fiscal year. The steps are the latest by John Eyler, who took over as chief executive in January, to reinvigorate the retailer’s sagging shares, which have fallen by two-thirds in the last three years. Paramus, N.J.-based Toys R Us will hold less than a 50% stake in Toys R Us Japan Ltd. after the initial and subsequent stock sales. Analysts estimated the IPO could raise at least $200 million. The planned stock repurchase would amount to about 33% of Toys R Us outstanding shares, based on Friday’s price. Toys R Us rose $1.06 to close at $13.50 on the New York Stock Exchange.