Sinko Industries to buy back shares, issue bonds

Sinko Industries Ltd. (TSE: 6458) announced a plan to repurchase 2,444,900 shares of its common stock for approximately ¥3 billion through an off-auction transaction (ToSTNeT-3) on March 14, 2025. This buyback represents 3.37% of outstanding shares (excluding treasury stock). Concurrently, Sinko Industries will issue ¥6 billion in zero-coupon convertible bonds due in 2030, primarily targeting overseas investors. The company intends to allocate the net proceeds from the bond issuance entirely to fund the share repurchase. The moves aim to improve capital efficiency and enhance shareholder returns, with a stated goal of achieving a dividend payout ratio of 50% and a DOE of 3.5% or more. The bond includes terms to mitigate dilution and is designed to be debt-like to suit existing shareholders.