January 9, 2018
AUTOBACS announces Transfer of Store Ownership of a Subsidiary
January 9, 2018 (Tokyo, Japan) - AUTOBACS SEVEN Co., Ltd. ("the Company", Representative Director and CEO: Kiomi Kobayashi ) announces today that 11 stores managed by MICHINOKU AUTOBACS Ltd., a consolidated subsidiary of the Company, and four stores managed by AUTOBACS AKITA Ltd., another consolidated subsidiary, will be transferred to IAAUTOBACS Co., Ltd. , which is scheduled to join the AUTOBACS franchise chain. Details are as follows:
1. Purpose of the transfer
The AUTOBACS Group is developing a variety of measures with the aim of increasing the earnings of the AUTOBACS Business. As part of these efforts, the Company has decided to optimize the store management systems in the Miyagi and Akita areas and reinforce area competitiveness and management efficiency.
2. Outline of the transfer of store ownership
As of March 1, 2018 (planned), 11 stores in Miyagi area, managed by MICHINOKU AUTOBACS Ltd., a consolidated subsidiary of the Company, and four stores managed by AUTOBACS AKITA Ltd., another consolidated subsidiary, will be transferred to IAAUTOBACS Co., Ltd. which is scheduled to join the AUTOBACS franchise chain.
3. Overview of the transferor company(1)
As of April 1, 2017
(1) Company name: | MICHINOKU AUTOBACS Ltd. | |
(2) Location: | SENDAI city, Miyagi | |
(3) Representative: | Kenichi Takeda | |
(4) Line of business: | Retail of car goods and services (Operation of fifteen AUTOBACS stores) | |
(5) Capital: | JPY 100 million | |
(6) Established: | May 2009 | |
(7) Net asset: | JPY -111 million | |
(8) Total assets: | JPY 1,239 million | |
(9) Present relationship between MICHINOKU AUTOBACS and the Company: | Capital relationship | The Company holds 100% of all outstanding shares of MICHINOKU AUTOBACS. |
Personnel relationship | An Auditor of MICHINOKU AUTOBACS has been delegated from the Company. | |
Business relationship | MICHINOKU AUTOBACS and the Company have concluded AUTOBACS franchise agreement, AUTOBACS CARS franchise basic agreement, AUTOBACS CARS franchise agreement and merchandise sale and purchase agreement. |
3. Overview of the transferor company(2)
As of April 1, 2017
(1) Company name: | AUTOBACS AKITA Ltd. | |
(2) Location: | AKITA city, Akita | |
(3) Representative: | Kenichi Takeda | |
(4) Line of business: | Retail of car goods and services (Operation of four AUTOBACS stores) | |
(5) Capital: | JPY 100 million | |
(6) Established: | July 1999 | |
(7) Net asset: | JPY -63 million | |
(8) Total assets: | JPY 223 million | |
(9) Present relationship between AUTOBACS AKITA and the Company: | Capital relationship | The Company holds 100% of all outstanding shares of AUTOBACS AKITA |
Personnel relationship | An Auditor of AUTOBACS AKITA has been delegated from the Company. | |
Business relationship | AUTOBACS AKITA and the Company have concluded AUTOBACS franchise agreement, AUTOBACS CARS franchise basic agreement, AUTOBACS CARS franchise agreement and merchandise sale and purchase agreement. |
4. Operating results of the stores to be transferred (15 stores) for the immediately preceding business year (the fiscal year ended March 31, 2017)
(1) Net sales | 4,360 million yen |
(2) Gross margin | 1,769 million yen |
(3) Operating loss | (113 million yen) |
(4) Ordinary loss | (106 million yen) |
5. Overview of the transferee Company
As of January 9, 2018
(1) Company name: | IAAUTOBACS Co., Ltd.(IAAUTOBACS) |
(2) Location: | Yokohama city, Kanagawa |
(3) Representative: | Hirotaka Arai |
(4) Line of business: | Retail of car goods and services |
(5) Capital: | JPY 98 million |
(6) Established: | January 2018 |
(7) Major shareholder | I.A CORPORATION 100% | |
(8) Present relationship between IAAUTOBACS and the Company: | Capital relationship | No relevant items |
Personnel relationship | No relevant items | |
Business relationship | IAAUTOBACS and the Company are scheduled conclude AUTOBACS franchise agreement, AUTOBACS CARS franchise basic agreement, AUTOBACS CARS franchise agreement and merchandise sale and purchase agreement. to | |
Third-party relationship | IAAUTOBACS and the Company have not concluded a third-party relationship. |
5.Transfer value and settlement method
Transfer price: JPY 76 million (planned)
Settlement method: Cash
6.Scheduled dates (planned)
(1) Date of decision | January 9, 2018 |
(2) Date of basic agreement | January 9, 2018 |
(3) Date of store transfer agreement | January 25, 2018 |
(4) Date of transfer | March 1, 2018 |
7.Future outlook
The scheduled transfer of the said stores will have no significant impact on the Company's consolidated business results for the current fiscal year. Any impact of the transfer on the business results for the fiscal year ending March 31, 2019 and thereafter will be incorporated in the performance forecast for the fiscal year ending March 31, 2019.
Disclaimer: Please note that this document is a summary translation of the Japanese press release and prepared for reference purposes only. We do not assure the correctness or completeness of this summary translation. Please note that this summary translation may be amended without notice, or be pulled from our website for such amendment purpose, etc., at our own discretion.
Autobacs Seven Co. Ltd. published this content on 09 January 2018 and is solely responsible for the information contained herein.
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