HOKKO CHEMICAL INDUSTRY CO.,LTD. [4992.T]
TOKYO, Apr 21 (Pulse News Wire) – Hokko Chemical Industry CO.,LTD. (4992.T) announced today that its board of directors has approved the sale of its own shares to a third party on May 8, 2026.
The transaction involves selling 160,000 ordinary shares at a price of ¥1,780 per share, totaling ¥284.8 million. The shares will be transferred to Nippon Custodian Bank Trust Account for the implementation of a new performance-linked stock compensation plan for executives. The purpose of this share disposal is to establish a trust fund for the new executive compensation program. The total number of shares to be disposed aligns with the anticipated issuance over four fiscal years based on the company's regulations for executive stock grants.
As of November 30, 2025, this represents approximately 0.58% of the outstanding shares, or 0.62% of the total voting rights, rounded to the nearest thousandth. The share price was determined based on the closing price of Hokko Chemical Industry’s stock on the Tokyo Stock Exchange on April 20, 2026, which was ¥1,780. This decision reflects the company's commitment to ensuring fair valuation in the stock market. The deviation rate from the average closing price over various time frames is as follows: - One month (March 23, 2026 to April 20, 2026): 1.19% - Three months (January 21, 2026 to April 20, 2026): 0.39% - Six months (October 21, 2025 to April 20, 2026): 4.64% All four attending audit committee members, including three external auditors, confirmed that the proposed share price does not favor the allotment recipients and is legally sound.
This transaction qualifies as a non-independent third-party allocation due to the dilution ratio being below 25% and not involving changes in controlling shareholders, thus exempting it from additional shareholder approval procedures according to Tokyo Stock Exchange regulations.
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