Meiko Electronics will pay the Development Bank of Japan ¥7.11bn on August 5 to retire the last of the preferred shares it sold during a 2022 financing round, closing out an instrument that has carried a fixed dividend obligation for nearly four years.
The Tokyo Stock Exchange-listed circuit-board maker's board approved buying back all 70 outstanding First Series bond-type class shares at roughly ¥101.5mn apiece, then cancelling them under Article 178 of the Companies Act. The shares were issued to the Development Bank of Japan in October 2022 for ¥7bn through a third-party placement, a move Meiko said at the time was meant to secure financial flexibility for opportunistic investment.
| Term | Detail |
|---|---|
| Shares acquired | 70 First Series bond-type class shares |
| Price per share | ¥101.5mn (¥101,506,581.60) |
| Total consideration | ¥7.11bn |
| Counterparty | Development Bank of Japan |
| Acquisition and cancellation date | August 5, 2026 |
Meiko said profitability and equity have recovered steadily as automotive circuit boards, smartphone and tablet boards, and newer lines in satellite-communication boards and SSD-related communication modules performed well. With further earnings gains expected, the company decided to eliminate the preferred-dividend burden the class shares carried. The disclosure says the redemption's effect on Meiko's own and consolidated results will be minor and that the number of outstanding common shares does not change. Meiko has not yet said when it will amend its articles of incorporation to remove the now-redundant class-share provisions.
The same board meeting also cleared a $20mn capital injection into Meiko Electronics Quang Minh, its wholly owned Vietnamese unit, lifting its capital from $10mn to $30mn to fund a third factory at the Quang Minh industrial park near Hanoi under the group's mid-term plan unveiled in May 2026. Payment is due August 25, and the increase makes the unit a "specified subsidiary" once its capital exceeds a tenth of the parent's.