HOKUETSU METAL Co.,Ltd. [5446.T]
TOKYO, May 12 (Pulse News Wire) – Hokuetsu Metal CO.,LTD. (5446.T) announced today that its board of directors has approved the disposal of shares for additional contributions to its Board Benefit Trust (BBT) and J-ESOP employee stock programs.
The share disposal, scheduled for May 27, involves ordinary shares totaling 69,600. Each share will be sold at ¥1,246 per share, resulting in a total amount of ¥86.7 million. The shares will be transferred to Mitsubishi UFJ Trust and Banking Corporation acting as trustee for the trust accounts set up under the BBT and J-ESOP schemes. The purpose of this disposal is to ensure sufficient shares are available for future benefit distributions to executives and employees according to the regulations outlined in the company's stock allocation procedures.
The number of shares disposed of corresponds to the anticipated distribution needs over three fiscal years for executives and five fiscal years for employees, based on the company’s performance during the fiscal year ending March 31, 2026. As of March 31, 2026, the disposal represents approximately 1.% of the outstanding shares and 1.% of the total voting rights. This decision aligns with the objectives stated in previous announcements regarding the introduction and continuation of the BBT and J-ESOP programs, which aim to incentivize performance through equity-based compensation. The company believes the dilution impact is reasonable considering the long-term benefits to executive and employee retention and motivation.
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