#Japan #share buyback #Corporate Governance #Minato #Maeda Kosen

Maeda Kosen's Strategic Share Buyback Plan

In a significant move to enhance capital efficiency and shareholder returns, Maeda Kosen Co., Ltd., a manufacturer and distributor of civil engineering and building materials, has announced a share buyback plan during its board meeting held on May 14, 2026. The company, headquartered in Minato, Tokyo, intends to buy back shares according to the provisions stipulated in the Companies Act, specifically referencing Articles 156 and 165.

Reasons Behind the Buyback

The primary motivation for this initiative is to improve the company’s capital efficiency while also ensuring that shareholders benefit from enhanced returns. This strategic decision underscores Maeda Kosen's commitment to maintaining a robust relationship with its investors and maximizing shareholder value.

Buyback Details

The specifics of the share buyback are as follows:

1. Type of Shares: The buyback will involve ordinary shares of the company.
2. Maximum Number of Shares to be Acquired: Up to 500,000 shares, which represents 0.74% of the total outstanding shares (excluding treasury stock).
3. Total Budget for Share Acquisition: A maximum budget of 1 billion yen has been allocated for this purpose.
4. Acquisition Period: The buyback will take place from May 15, 2026, to September 30, 2026.
5. Acquisition Method: The shares will be acquired through the Tokyo Stock Exchange's ToSTNeT-3 system.

It is worth noting that due to market dynamics, there is a possibility that not all shares intended for purchase may be acquired.

Furthermore, the company has received notification from its chairman, Yoshiyuki Maeda, regarding his intent to sell some of his ordinary shares in the company, suggesting an alignment with the buyback strategy.

Measures to Avoid Conflicts of Interest

In an effort to ensure transparency and objectivity in the decision-making process, Yoshiyuki Maeda, the company’s chairman and an individual likely to be involved in the buyback transaction, absented himself from discussions and voting during the board meeting. Likewise, Naohiro Maeda, the company’s president and also the chairman's son, voluntarily refrained from participating in these proceedings due to potential conflicts of interest.

Current Shareholding Status

As of March 31, 2026, Maeda Kosen’s treasury stock situation reflects a total of 67,186,037 outstanding shares (excluding treasury stock), with 894,575 of these shares designated as treasury stock. This current structure highlights the company’s robust foundation and readiness for strategic financial maneuvers.

Company Overview

Founded in 1972, Maeda Kosen has played a pivotal role in the development and maintenance of infrastructure in Japan. The company has expanded its operations by engaging in the manufacture and sale of civil engineering materials as well as industrial materials created from various synthetic fibers and nonwoven fabrics. As a comprehensive enterprise in geosynthetics, Maeda Kosen contributes actively to building a safe, secure society and enhancing disaster resilience within the country.

This share buyback initiative is an important step in Maeda Kosen's journey towards increased profitability and shareholder satisfaction, demonstrating its ongoing commitment to corporate governance and strategic financial practices.