Nippon Denko boosts employee welfare with restricted stock plan

Nippon Denko will dispose of 626,470 treasury shares as restricted stock for its employee stock ownership plan, effective December 15, 2025. This initiative, commemorating the company's 100th anniversary, aims to enhance employee welfare and align employee interests with sustainable corporate value growth. The shares will be allocated to the Nippon Denko Employees' Shareholding Association at JPY 330 per share, totaling JPY 206,735,100. This price represents the closing price on the Tokyo Stock Exchange Prime Market on August 27, 2025.

The plan grants eligible employees a monetary claim of JPY 201,300 each, which will be contributed to the Employee Shareholding Association to acquire 610 restricted shares per employee. The restricted stock will be subject to a holding period from December 15, 2025, to May 31, 2030, managed in a dedicated account at Nomura Securities. The allocation represents a negligible dilution of 0.46% of Nippon Denko's total issued shares as of June 30, 2025.

The audit and supervisory committee, composed of five outside directors, affirmed that the disposal price is fair and not particularly advantageous to the allottee, aligning with the plan's objectives. This move is consistent with financial regulations, not requiring a third-party opinion or shareholder confirmation due to the low dilution rate and absence of a change in controlling shareholders.