Nippon Denko allocates treasury shares for employee incentive plan

Nippon Denko Co., Ltd. will dispose of 626,470 treasury shares as restricted stock for its Employees' Shareholding Association on December 15, 2025. The shares will be allocated at 330 yen per share, totaling 206,735,100 yen in proceeds. This plan, adopted on August 5, 2025, aims to promote wealth accumulation for eligible employees and align their interests with shareholders.

The restricted stock incentive plan grants eligible employees a monetary claim of 201,300 yen each, which is then used to acquire 610 shares of restricted stock through the Employee's Shareholding Association. Restrictions on transfer will apply from December 15, 2025, to May 31, 2030, with conditions for lifting these restrictions including continuous membership in the association. The disposal of treasury shares represents a 0.46% dilution of issued shares.

The disposal price of 330 yen per share, based on the closing price of Nippon Denko common shares on the Tokyo Stock Exchange Prime Market on August 27, 2025, was deemed reasonable by the audit & supervisory committee. The company noted that the purchase price does not provide an advantageous price to the allottees.