Chiyoda Corporation
Notice Regarding Agreement on Redemption Policy for Class A Preferred Shares and Partial Amendment to Articles of Incorporation
Agreed with Mitsubishi Corporation on modification of terms for 175,000,000 Class A Preferred Shares with total paid-in amount of 70 billion yen, aiming for redemption of all shares totaling approximately 90 billion yen between 2026 and 2028.
Key Figures
- Number of Class A Preferred Shares: 175,000,000 shares
- Total Paid-in Amount: 70,000,000,000 yen
- Scale of Preferred Share Redemption: Approx. 90 billion yen (2026–2028)
- Preferred Dividend Rate: 3% until end of June 2028, 12% thereafter
- Redemption Price: Fixed at 436 yen per share until end of June 2029
AI要約
Overview of Redemption Policy and Terms Modification for Class A Preferred Shares
Chiyoda Corporation has agreed with Mitsubishi Corporation to amend the terms of Class A Preferred Shares and to aim for full redemption of approximately 90 billion yen worth of shares over about two years from June 2026 to June 2028. The current share price-linked redemption amount will be changed to a fixed amount (436 yen), and the timing for exercising the conversion rights to common shares will be postponed until after July 2029. The preferred dividend rate will remain at 3% until June 2028 and will increase to 12% thereafter. This aims to achieve financial independence, resumption of dividends on common stock, and transition to the Prime Market classification.
Future Schedule and Impact on Shareholders
This agreement is conditional upon approval of the partial amendment to the articles of incorporation at the 98th Annual General Meeting of Shareholders scheduled for June 2026. After approval, the specific timing and redemption price will be determined. Repayment of subordinated loans from Mitsubishi UFJ Bank and cancellation of credit lines will also proceed to strengthen the financial base. The modification of preferred share terms dispels concerns about dilution of common shares and aims to establish a long-term growth trajectory. There is expected to be no impact on the fiscal year ending March 2026 performance.
