Mitsubishi Corporation
Notice Regarding Changes in Subsidiaries (Exclusion of Specified Subsidiaries)
The Company has decided on the early redemption of Class A preferred shares of Chiyoda Corporation, and plans to exclude the company from consolidated subsidiaries to equity-method affiliates after approval at the June 2026 Ordinary General Meeting of Shareholders.
Key Figures
- Preferred Shares Redemption Amount: 76.3 billion yen (fixed)
- Cumulative Unpaid Dividends: 10.5 billion yen
- Our Shareholding Ratio (Chiyoda Corporation): 33.46%
AI要約
Overview of Change
Mitsubishi Corporation has decided on the early redemption of Class A preferred shares of its consolidated subsidiary Chiyoda Corporation and plans to implement the freezing of conversion rights into common shares until the end of June 2029, conditional upon approval of the proposed amendments to the Articles of Incorporation. As a result, Chiyoda Corporation will be accounted for as an equity-method affiliate, excluded from consolidated subsidiaries. Simultaneously, Chiyoda Ex-One Engineering and CHIYODA INTERNATIONAL, subsidiaries of Chiyoda Corporation, will also be excluded from specified subsidiaries.
Outlook and Agreement Details
The impact on fiscal 2025 earnings from this change is expected to be minor, with the fiscal 2026 impact still under review. The redemption conditions for the preferred shares have been agreed to be fixed at 76.3 billion yen instead of linked to stock market price, with approximately 90 billion yen scale redemptions to be executed between 2026 and 2028. The senior loan facility is planned to be terminated concurrently with the execution of these preferred share condition changes. The holding policy for common shares will be reassessed going forward.
