Tokai Holdings Corporation TSE:3167

TOKAI : Notice Regarding Acquisition of Shares in G&F Co.,Ltd (Conversion into a Consolidated Subsidiary)

Published

Source: MarketScreener

December 20, 2024

For Immediate Release

Company Name:

TOKAI Holdings Corporation

Representative Name:

Katsuo Oguri, Representative

Director, President and CEO

(Code No. 3167, TSE Prime Market)

Notice Regarding Acquisition of Shares in G&F Co.,Ltd (Conversion into a Consolidated Subsidiary)

TOKAI Holdings Corporation (the "Company") is pleased to announce that its subsidiary, TOKAI Communications Corporation (headquartered in Shizuoka City, Shizuoka; President and Representative Director: Tsuyoshi Takahashi; hereinafter referred to as "TOKAI COM"), responsible for the information and telecommunications business of the TOKAI Group, has entered into a share transfer agreement to acquire shares in G&F Co., Ltd (headquartered in Shinjuku-ku,Tokyo; President and Representative Director: Takashi Shimomae; hereinafter referred to as "G&F"), thereby making G&F a fully- owned subsidiary of the Company. The details are as follows.

Details

1. Reasons for the share acquisition

TOKAI COM provides optimal solutions to customers based on three pillars: "cloud," "network," and "system," which support the foundation of the digital society. Currently, our group is implementing a growth strategy based on the "Mid- term Management Plan 2025," with the fiscal year 2025 as the final year. As part of this plan, we have set "growth in business profitability" as one of our core strategies. In the information and telecommunications business, we are focusing on key initiatives such as "expanding business areas domestically and internationally" and "strengthening digital infrastructure to support area expansion." We are also committed to nurturing and strengthening digital talent to meet the DX needs of our customer companies.

G&F specializes in proposing, designing, constructing, and maintaining IT infrastructure systems in the Tokyo metropolitan area. In recent years, G&F has been focusing on cloud business and has steadily grown its business by providing services through experienced cloud technicians.

Through collaboration with G&F, TOKAI COM has determined that through collaboration with G&F, it can strengthen the technical capabilities in the growth areas of IT infrastructure and cloud, and achieve sustained business growth in these fields. Therefore, we have decided to acquire shares in G&F. Moving forward, we will leverage the strengths of both companies, focus on advanced talent development, accurately capture customer needs, and contribute to the development of our customers' businesses by realizing DX.

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2. Overview of G&F Co.,Ltd

(1)

Name

G&F Co.,Ltd

(2)

Address

5-18-12 Shinjuku, Shinjuku-ku, Tokyo

(3)

Name and title of

Takashi Shimomae, Representative Director and President

representative

(4)

Business description

Cloud infrastructure construction, System migration,

Infrastructure design, and Construction.

(5)

Share capital

23 million yen

(6)

Established

May 19, 1993

Major shareholders and

(7)

ownership percentage

Takashi Shimomae

100%

(as of December 20, 2024)

Relationship between the

Capital relationship

Not applicable

(8)

listed company and the

Personnel relationship

Not applicable

relevant company

Business relationship

Not applicable

(9)

The recent three-year financial performance and financial condition of the company

Fiscal year end

FY3/2022

FY3/2023

FY3/2024

Net assets

109 million yen

203 million yen

230 million yen

Total assets

255 million yen

421 million yen

350 million yen

Net assets per share

239,028 YEN

442,336 YEN

501,174 YEN

Net sales

753 million yen

931 million yen

711 million yen

Operating profit

7 million yen

138 million yen

27 million yen

Ordinary profit

13 million yen

143 million yen

28 million yen

Profit

11 million yen

93 million yen

27 million yen

Profit per share

24,214 YEN

203,308 YEN

58,838 YEN

Dividends per share

- yen

- yen

- yen

3. Outline of the party to the share acquisition

(1)

Name

Takashi Shimomae

Relation between TOKAI

The Company has no significant capital, personal or business relationship in

(2)

Holdings Corporation and

particular with the individual.

the individual

4. Number of shares to be acquired and the state of share ownership before and after the acquisition

Number of shares held

0 shares

(1)

(Number of voting rights: 0)

before the transfer

(Ownership ratio: 0%)

460 shares

(2)

Number of shares acquired

(Number of voting rights: 460)

(Ratio to the number of shares issued: 100%)

Number of shares held

460 shares

(3)

(Number of voting rights: 460)

after the transfer

(Ownership ratio: 100%)

5. Schedule

(1)

Date of agreement

December 2, 2024

(2)

Date of share underwriting

December 20, 2024

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6. Future outlook

The Company considers that the impact of the subject matter on consolidated business results for the fiscal year ending March 31, 2025 will be insignificant.

7. Contact for inquiries

TOKAI Communications Corporation

Planning and Administration Department, Administration Division, Persons in charge: Ogura, Tateda

TEL: +81-(0)3-5404-3277

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