Toyo Seikan Group Holdings Plans Share Disposition Linked to Performance-Based Compensation

TOKYO, Aug 07 (Pulse News Wire) – Toyo Seikan Group Holdings,ltd. (5901.T) announced today that its board of directors has approved the repurchase of shares as part of its performance-based compensation program.

The repurchase, scheduled for August 25, 2026, involves the disposal of approximately 131,000 ordinary shares at a price of ¥4,250 per share, totaling ¥556.8 million. The shares will be transferred to Nippon Custodian Bank Trustee Co., Ltd. (Trust Account). This transaction is aimed at implementing a performance-linked equity incentive system designed for executives and board members excluding outside directors. The repurchased shares will be held in trust until their delivery to eligible beneficiaries based on the company's stock issuance regulations.

The dilution impact of this repurchase is estimated to be 0.09% relative to the total number of outstanding shares as of June 30, 2026, which equates to 0.09% of the total voting rights as of June 30, 2026. Toyo Seikan believes that this initiative enhances the alignment between executive remuneration and shareholder value, contributing positively to long-term corporate growth. The company assesses that the volume of shares to be repurchased and the degree of dilution are reasonable and unlikely to significantly affect the trading market. (Trust Account), with Nippon Custodian Bank acting as the subsequent trustee. Beneficiaries include those among the targeted directors and officers who meet the beneficiary criteria.

The trust term runs from August 19, 2021, to August 2031, and the purpose is to deliver company shares to beneficiaries according to established regulations.