Keihanshin Building Co.,Ltd. [8818.T]
TOKYO, May 13 (Pulse News Wire) – Keihanshin Building CO.,LTD. (8818.T) rejected a share buyback proposal submitted by minority shareholders ahead of its upcoming annual general meeting scheduled for June 19.
The proposal, which seeks the acquisition of shares held by specific shareholders, was deemed inconsistent with legal requirements and potentially harmful to long-term corporate value and shareholder interests. The board's opposition stems from concerns that the proposal conflicts with the Companies Act and could undermine the company’s ongoing efforts to enhance corporate governance and achieve strategic objectives outlined in its ten-year business plan. Specifically, the proposal would require the company to purchase up to approximately 23.94 million shares, equivalent to around 1.5 trillion yen based on recent stock prices, significantly impacting available cash reserves and future investment capabilities.
Furthermore, the board highlighted that executing such a large-scale share repurchase could jeopardize the company’s financial stability and credit rating, complicating refinancing and external funding opportunities. Additionally, the proposal includes factual inaccuracies and misinterpretations, further solidifying the board’s stance against its implementation. In contrast, the company continues to pursue initiatives aimed at increasing shareholder returns through progressive dividend policies and capital management strategies, as detailed in its recently announced plans.
These measures aim to align with investor expectations and support sustainable growth and profitability.
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