Sekisui Jushi Rejects Share Buyback Proposal Amid Strategic Concerns

TOKYO, May 19 (Pulse News Wire) – Sekisui Jushi Corporation (4212.T) rejected a shareholder proposal submitted by NIPPON ACTIVE VALUE FUND PLC for its upcoming annual general meeting scheduled for June 25, 2026. The board opposed the proposal due to concerns over strategic alignment and capital efficiency.

The proposal called for the acquisition of approximately 10% of outstanding shares within a year, which the board deemed excessive compared to their ongoing strategy of maintaining a balanced approach to share buybacks and dividend payouts. In fiscal 2026, the company purchased ¥20 billion 90 million yen worth of treasury stock and increased annual dividends per share by 10%, achieving a consolidated payout ratio of 30%. Additionally, the board disagreed with proposals related to changes in director composition and equity-based compensation plans, citing existing governance structures and incentive programs designed to align executive interests with shareholder value.

They also opposed altering the record date for shareholder meetings, arguing that such changes could complicate operations and confuse shareholders. In light of these considerations, the board concluded that the proposed measures did not align with the company's long-term vision and operational goals outlined in its Group Vision 2030 and Medium-Term Business Plan 2027. The company remains committed to fostering constructive dialogue with stakeholders through enhanced transparency and timely disclosures.