Tosei Corporation Announces Completion of Share Repurchase Program Without Any Shares Acquired

Key Points from the Announcement

• Share Repurchase Program Period: April 11, 2025, to November 30, 2025
• Maximum Number of Shares Authorized for Repurchase: Up to 700,000 shares (1.4% of issued shares, excluding treasury shares)
• Total Value Authorized for Repurchase: Up to 1,000 million yen
• Total Shares Actually Repurchased: 0 shares
• Total Value of Shares Repurchased: 0 yen

Detailed Overview

Tosei Corporation has announced the status and completion of its share repurchase program, initially authorized by a Board of Directors’ resolution on April 7, 2025. Despite the company’s significant authorization — up to 700,000 shares, representing 1.4% of its issued shares (excluding treasury shares) and up to 1,000 million yen in value — no shares were actually repurchased during the period from April 11, 2025, to November 30, 2025.

The share buyback was to be executed through discretionary investment by a securities company, providing flexibility in timing and execution within the set parameters. However, the entire authorized buyback window elapsed with zero shares acquired.

Important Considerations for Shareholders

• Reason for No Share Repurchase:
  • Initially, the company resolved to repurchase shares in response to a sharp decline in its stock price following global market turmoil, particularly after reciprocal tariff measures were announced in the United States. Management believed the stock price had fallen below its fundamental value and intended to support shareholder value through the buyback.
  • However, as part of its disciplined capital allocation strategy, Tosei Corporation set an upper limit on the purchase price for buybacks, to avoid repurchasing at valuations deemed too high and potentially diluting shareholder value.
  • After the resolution, the company’s stock price remained above the anticipated purchase price threshold. As such, no shares were repurchased throughout the authorized period, and the program expired unutilized.
• Impact on Shareholder Value:
  • The absence of a buyback, despite prior authorization, may be significant. Buybacks often support or boost share price by reducing supply and signaling management’s confidence in the company’s value. The company’s decision not to proceed, due to valuation concerns, suggests a cautious approach to capital management, prioritizing long-term shareholder value and financial prudence over short-term price support.
  • Shareholders should note that future buybacks are not guaranteed and will depend on market conditions, company valuation, and strategic considerations.
• Forward-Looking Policy:
  • Tosei Corporation will continue to balance growth investments, capital efficiency, and financial soundness, aiming to maximize long-term shareholder value through flexible management decisions.

Potential Market Impact

The non-execution of the repurchase program may influence investor sentiment. While some may appreciate the company’s disciplined approach to capital allocation — only intending to buy back shares at attractive valuations — others may be disappointed by the lack of direct support for the share price through buybacks. This update is potentially price-sensitive as it provides clarity on the company’s approach to capital returns and signals the management’s outlook on current valuation levels.

Disclaimer: This article is based on public disclosures by Tosei Corporation and is intended for informational purposes only. It does not constitute investment advice. Investors should conduct their own research and consider their individual circumstances before making investment decisions. The company assumes no responsibility for inaccuracies or any damages resulting from the use of this information.

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