2023/07/31

Notice Regarding Acquisition of Own Shares and Cancellation of Treasury Shares (Acquisition of own shares pursuant to the provisions of Article 165, paragraph 2 of the Companies Act and cancellation of treasury stocks pursuant to the provisions of Article 178 of the Companies Act)

OSAKA, Japan, July 31, 2023 - Shionogi & Co., Ltd.  (Head Office: Osaka, Japan; Chief Executive Officer: Isao Teshirogi, Ph.D.; hereafter "Shionogi") announced that it has resolved at a meeting of the Board of Directors held today, to acquire own shares pursuant to the provisions of Article 156 of the Companies Act, applied by replacing terms pursuant to the provisions of Article 165, paragraph 3 of said Act, and has resolved to cancel treasury shares pursuant to the provisions of Article 178 of the Companies Act, as described below.

 

1.      Reasons for the acquisition of own shares and cancellation of treasury shares

On June 1, 2023, Shionogi announced the revision of the medium-term business plan STS2030 (Shionogi Transformation Strategy 2030) for the period until FY2030, and a new three-year medium-term business plan, STS Phase2, that begins in fiscal 2023. In STS Phase 2, we have set up an aggressive investment strategy aimed at creating new value and a financial strategy using DOE, EPS, and ROE as the key performance indicators.

After comprehensively considering the stock price level, which we believe is undervalued, future business plan, performance trends, etc., Shionogi has decided to acquire own shares at the maximum acquisition price and cancellation of treasury shares in order to increase shareholder return and capital efficiency by following a flexible capital policy.

DOE (Dividend On Equity attributable to owners of the parent)

EPS (basic Earnings Per Share)

ROE (Return On Equity attributable to owners of the parent)

 

2.      Details of matters pertaining to the acquisition of own shares

Class of shares to be acquired                 Common stock of the Company

Total number of shares to be acquired    12,500,000 shares (maximum)

(4.2% of total outstanding shares [excluding treasury shares])

Total amount of acquisition cost             75 billion yen (maximum)

(1)          Period of acquisition          August 1, 2023, to March 31, 2024

(2)          Method of acquisition        Acquire in the open market through

discretionary trading in Tokyo Stock

Exchange

Depending on investment opportunities, market environment and other factors, it is possible that no share repurchase, or a share repurchase of only a portion of the above, will be carried out.

 

3.      Details of matters pertaining to the cancellation of treasury shares

(1)    Class of shares to be cancelled               Common stock of the Company

(2)    Number of shares to be cancelled          All of the shares acquired as stated in 2 above

(3)    Scheduled date of cancellation               April 17, 2024 (planned)

 

(Reference) Treasury stockholding as of June 30, 2023

Total number of shares issued (excluding treasury stock)         297,305,423 shares

Number of shares of treasury stock                                      10,080,742 shares

 

 

References

 

1.       Revision of the Medium-Term Business Plan STS2030 Accessed June 1, 2023. Available at: https://www.shionogi.com/global/en/news/2023/6/e20230601_3.html

 

 

For Further Information, Contact:

SHIONOGI Website Inquiry Form : https://www.shionogi.com/global/en/contact.html