Tokio Marine Holdings will split its shares 15-for-1 and introduce a new benefit program for long-term shareholders. The minimum investment after the split will be approximately ¥50,000, and the initial benefit will be worth ¥7,500, but eligibility requires continuous share ownership for 3 years or more.
Tokio Marine Holdings announced that it will split each share into 15 shares, with 30 September as the record date and the split effective 1 October. This will be the company’s first stock split in approximately 4 years.
Based on the current closing price, the post-split share price implies that 100 shares could be purchased for approximately ¥50,000. Before the split, purchasing 100 shares required approximately ¥760,000.
At the same time as the split, the company will introduce a new benefit program for long-term shareholders. The benefit will be available to shareholders who continuously hold at least 100 shares for 3 years or more.
The initial benefit will be worth ¥7,500, followed by electronic money and other benefits worth ¥2,500 annually from the following year. However, the program applies only in the first year in which the shareholder meets the 3-year continuous holding requirement.
The initial ¥7,500 benefit is equivalent to approximately 14.7%, but this is not an annual yield, and the amount cannot be received immediately after the split. Shareholders will need to wait approximately 3.5 years until the initial record date. The post-split share price and dividend outlook also require separate consideration.