Shinko Electric Industries : Notice Concerning Amendment of Year-End Dividend Forecast for Fiscal Year Ending in March 2024 (No Dividends) and Abolition of Shareholder Special Benefit Program (141.9 KB)

Notice: This document is a translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

December 12, 2023

80, Oshimada-machi,Nagano-shi,381-2287 Japan

SHINKO ELECTRIC INDUSTRIES CO., LTD.

Stock exchange code: 6967, TSE Prime

Notice Concerning Amendment of Year-End Dividend Forecast for Fiscal Year Ending in March 2024 (No Dividends) and Abolition of Shareholder Special Benefit Program

In light of the tender offer (the "Tender Offer") for the Company's common shares (the "Company Shares") to be conducted by JICC-04, Ltd. (the "Tender Offeror") as stated in the "Notice Concerning Expression of Opinion to Support Commencement of Tender Offer for Company Shares by JICC-04, Ltd. and Recommendation of Tender Thereto" (the "Press Release Giving Notice of Expression of Opinion") announced separately today, the Company hereby announces that it passed a resolution at its Board of Directors meeting, held today, not to make any year-end dividends for the fiscal year ending in March 2024, and to abolish the shareholder special benefit program beginning with the fiscal year ending in March 2024.

1. Amendment of dividend forecast

1. Amendment details

		Dividend per share
	End of second	Fiscal year-end	Annual
	quarter
Previous forecast	25.00 yen	25.00 yen	50.00 yen
(Announced on April 27, 2023)
Current amended forecast		0.00 yen	25.00 yen
Actual results for the current	25.00 yen
fiscal year
(Ref.) Actual results for the
previous fiscal year	25.00 yen	25.00 yen	50.00 yen
(Fiscal year ended in March 2023)

2) Reasons for the amendment

The Company passed a resolution at its Board of Directors meeting held today to express an opinion to support the Tender Offer and recommend that its shareholders tender their shares in the Tender Offer. The Board of Directors' resolution above was made on the assumption that the Tender Offeror intends to make the Company its wholly-owned subsidiary through the Tender Offer and a series of subsequent procedures and that the Company Shares will be delisted. For details, please see the Press Release Giving Notice of Expression of Opinion.

The Company previously positioned shareholder returns as one of its most important management policies. However, according to the Tender Offeror, the purchase price for the Tender Offer was determined on a comprehensive basis, based on the assumption that no dividends would be paid based on the base date of March 31, 2024. Accordingly, the Company passed a resolution at its Board of Directors meeting held today to amend the dividend forecast for the fiscal year ending in March 2024 and not to pay year-end dividends for the fiscal year ending in March 2024.

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2. Abolition of shareholder special benefit program

The Company is grateful to its shareholders for their ongoing support, and had the shareholder special benefit program in place with a base date of March 31 of each year with the intention to make investment in Company Shares more attractive and to have more shareholders hold Company Shares in the medium to long term. However, in light of the plan to conduct the Tender Offer for the Company Shares, the Company passed a resolution at its Board of Directors meeting, held today, to abolish the shareholder special benefit program. Accordingly, the Company's shareholder special benefit program will be abolished, with the final shareholder special benefit being the one granted in June 2023 to shareholders covered by the program as of March 31, 2023.

End of document

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