TOKYO, Apr 30 (Pulse News Wire) – Ferrotec Corporation (6890.T) announced today that its subsidiary Anhui Fulade Technology Development Co., Ltd. (FTSVA) completed a share buyback and cancellation based on a performance compensation agreement with Shanghai Shenhe Investment Co., Ltd.
(FTS). According to the agreement, FTSVA repurchased shares from FTS due to FLH's earnings falling below agreed-upon targets for the fiscal year ending March 2025. Under the contract, FTSVA bought back 1,000,000 ordinary shares from FTS at 1.00 Chinese yuan per share, resulting in a reduction of FTS’s stake in FTSVA. The calculation was based on a shortfall of ¥120 million Chinese yuan in cumulative promised net profit compared to realized profits.
The total number of shares to be repurchased was calculated as follows: - Cumulative promised net profit for FY 2025: ¥285.2 million yuan - Realized net profit for FY 2025: ¥165.2 million yuan - Total price of target assets (FLH stock value): ¥16.3 million yuan - Shares to be repurchased: 1,000,000 Following the transaction, FTS’s holding ratio in FTSVA decreased from 25.5% to 24.5%. The company plans to hold a shareholders' meeting soon to finalize the process and complete necessary filings with regulatory authorities. This transaction does not impact Ferrotec's consolidated group operations or profitability, but it slightly reduces FTSVA's equity structure. There are no changes to the company's medium-term asset sale strategy or self-share acquisition policy.
🟢 Confidence: High AI-translated content.