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Share Issuance and Disposal6503Mitsubishi Electric CorporationElectrical Equipment and Precision Instruments

Notice Regarding the Disposal of Treasury Shares in Connection with the Extension of the Executive Compensation BIP Trust and Introduction of the Share Grant ESOP Trust

The Company has decided to make an additional contribution to extend the BIP trust for directors and dispose of 513,600 treasury shares to the trust account in connection with the introduction of an ESOP trust for executive employees. The disposal price is ¥6,301 per share, and the disposal will take place on 12 June 2026.

Worth reading
52Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Neutral
Direction inferred from the company’s description.
Scale
0.03
Dilution rate (%)
Wording
Definitive
How definitive the wording is.

Details of issuance or disposal

Disposal of treasury shares as stock compensation

Who receives how much

BIP trust Common shares: 254,100 shares / ESOP trust Common shares: 259,500 shares / Total 513,600 shares

The Master Trust Bank of Japan, Ltd. (Executive Compensation BIP Trust Account)254,100 shares
The Master Trust Bank of Japan, Ltd. (ESOP Trust Account for Share Grants)259,500 shares

The height of each bar represents the proportion of shares received by each allottee. The thin line below represents the number of existing shares to which these shares are added.

¥6,301 per share
Total issue value

Not applicable (disposal of treasury shares)

Amount of funds to be raised
Total payment amount ¥3,236,193,600 / Estimated net proceeds Not disclosed
発行済株式総数

0.03% (as a percentage of the 20,470,550 total voting rights as of 31 March 2026)

The dilution rate shows what proportion the newly issued shares represent of the existing shares. The higher the proportion, the more the value and voting rights per share are diluted.

Categories and Number of Persons Covered
Executive officers and other eligible personnel Not disclosed / Eligible employees Executive employees meeting certain requirements (number of people and number of shares: Not disclosed)
Intended allottee's holding policy
The shares will be delivered to executive officers and other eligible personnel in accordance with the share delivery rules. The disposed shares are not expected to enter the stock market all at once.
Payment date
12 June 2026
Basis for determining the amount to be paid
The closing price of the Company's shares on the Tokyo Stock Exchange on 22 May 2026, ¥6,301. No discount or premium.
Procedures under the Corporate Code of Conduct
Because the dilution rate is less than 25% and there will be no change in the controlling shareholder, it is not necessary to obtain an opinion from an independent third party or conduct procedures to confirm shareholder intent as stipulated in Article 432 of the Tokyo Stock Exchange Securities Listing Regulations.
Impact on Business Performance
The impact on the stock market is expected to be limited, and the Company considers the number of shares disposed of and the level of dilution to be reasonable.
Details of issuance or disposal
ItemDetails
Type of issuance or disposalDisposal of treasury shares as stock compensation
Number of shares to be issued or disposed ofBIP trust Common shares: 254,100 shares / ESOP trust Common shares: 259,500 shares / Total 513,600 shares
Issue price and disposal price¥6,301 per share
Total issue valueNot applicable (disposal of treasury shares)
Amount of funds to be raisedTotal payment amount ¥3,236,193,600 / Estimated net proceeds Not disclosed
Payment date12 June 2026
Intended allotteeName The Master Trust Bank of Japan, Ltd. (Executive Compensation BIP Trust Account) / Number of Shares 254,100 shares, Name The Master Trust Bank of Japan, Ltd. (ESOP Trust Account for Share Grants) / Number of Shares 259,500 shares
Intended allottee's holding policyThe shares will be delivered to executive officers and other eligible personnel in accordance with the share delivery rules. The disposed shares are not expected to enter the stock market all at once.
Dilution Rate0.03% (as a percentage of the 20,470,550 total voting rights as of 31 March 2026)
Basis for determining the amount to be paidThe closing price of the Company's shares on the Tokyo Stock Exchange on 22 May 2026, ¥6,301. No discount or premium.
Categories and Number of Persons CoveredExecutive officers and other eligible personnel Not disclosed / Eligible employees Executive employees meeting certain requirements (number of people and number of shares: Not disclosed)
Procedures under the Corporate Code of ConductBecause the dilution rate is less than 25% and there will be no change in the controlling shareholder, it is not necessary to obtain an opinion from an independent third party or conduct procedures to confirm shareholder intent as stipulated in Article 432 of the Tokyo Stock Exchange Securities Listing Regulations.
Impact on Business PerformanceThe impact on the stock market is expected to be limited, and the Company considers the number of shares disposed of and the level of dilution to be reasonable.
Items this document does not state (15)
Estimated issuance expensesSpecific use of fundsTotal number of issued sharesExercise priceExercise periodNumber of Stock Acquisition RightsTransfer restriction periodConditions for lifting transfer restrictionsReason for acquisition without considerationTotal Stock-Based CompensationUnderwriter / lead underwriterOverallotmentStock Split RatioMost recent equity financingMajor shareholders after the offering

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

To enhance the awareness of executive officers and other eligible personnel of their contribution to improving corporate value over the medium to long term and their shared interests with shareholders. The disposed shares will be delivered in accordance with the share delivery rules and are not expected to enter the market all at once. Accordingly, the Company considers the impact on the stock market to be limited and the number of shares disposed of and the level of dilution to be reasonable.

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Notice Regarding the Disposal of Treasury Shares in Connection with the Extension of the Executive Compensation BIP Trust and Introduction of the Share Grant ESOP Trust | Mitsubishi Electric Corporation (6503) timely disclosure | Komori