Nishikawa Rubber to Distribute Shares to Employee Holding Association on July 2

TOKYO, May 14 (Pulse News Wire) – Nishikawa Rubber CO.,LTD. (5161.T) announced plans to distribute ordinary shares through its employee holding association, Nishikawa Rubber Employees' Shareholding Association, as part of a share grant scheme aimed at boosting employee engagement.

The distribution, scheduled for July 2, 2026, involves up to 1,000,000 shares at a price of ¥1,000 per share, totaling ¥1 billion. The company's board approved the plan on May 13, 2026, setting the share price based on the previous day’s closing value on the Tokyo Stock Exchange. The purpose of this scheme is to encourage further participation in the employee holding association by offering special incentives to members.

The number of shares distributed will depend on the final count of participating employees, which could be less than the maximum due to potential non-participation or resignation. The dilution impact is estimated to be approximately 0.15% relative to the total outstanding shares as of April 1, 2026, and 0.14% relative to the total voting rights as of the same date. In addition, the company's audit committee reviewed the process and confirmed that the pricing was reasonable and did not favor the holding association unfairly.

As such, independent third-party opinions and shareholder approval procedures are not required under the Tokyo Stock Exchange regulations.