TOYO Denki Seizo K.K.(Toyo Electric Mfg.co.,ltd.) To Sell Own Shares to JR EAST Nippon Railways

TOKYO, Jul 15 (Pulse News Wire) – Toyo Denki Seizo K.k.(toyo Electric Mfg.co.,ltd.) (6505.T) resolved at a board meeting on July 15 to sell own shares to East Japan Railway Company (JR East). The sale involves ordinary shares totaling 578,000 at a price per share determined based on the higher closing price on either July 14 or July 21, 2026.

The transaction aims to raise funds for research and development investments focusing on high-efficiency railway equipment and next-generation Shinkansen components. The proceeds will be allocated towards growth initiatives outlined in the company's mid-term plan "Sustainable 2030," which includes enhancing revenue strategies and strengthening profitability through cost optimization and quality improvements.

Additionally, the funds will support capital management aimed at maximizing shareholder value while fostering closer collaboration with JR East. Under the deal, JR East will acquire the shares via private placement and additional open-market purchases, bringing its stake in TOYO Electric to approximately 20.00%.

The company expects this strategic move to bolster technological advancements and contribute to sustainable rail infrastructure development.