Nissei Plastic Industrial and Toyo Innovex, both wholly owned subsidiaries of GMS Group (TYO:544A), have resolved at their extraordinary general meetings to distribute all GMS Group shares they hold back to the parent company as a dividend in kind.
The injection moulding machine maker said the move is required under the Companies Act, which mandates that subsidiaries dispose of parent company shares within an appropriate period.
As a result, GMS Group will acquire 1.54 million treasury shares on May 28. Following the acquisition, total issued shares excluding treasury shares will decrease to 69.4 million shares, a reduction of 1.54 million shares.