FOR IMMEDIATE RELEASE
January 18, 2021
Company Name: | Leopalace21 Corporation |
Representative: | Bunya Miyao, President and CEO |
Code Number: | 8848 (Tokyo Stock Exchange, First Section) |
Contact: | Shinji Takekura, Senior Department Manager |
Tel: +81-50-2016-2907 | |
E-mail: ir@leopalace21.com |
Notice Concerning Transferring Equity Interest in a Subsidiary
Leopalace21 Corporation (Headquarters: Nakano, Tokyo; President and CEO: Bunya Miyao; the "Company") announces that the Company determined to transfer the whole equity interest in LEOPALACE21 VIETNAM CO., LTD. ("Leopalace21 Vietnam") a subsidiary of the Company to Chuwa Petroleum Co., Ltd. ("Chuwa Petroleum") as follows. As a result of the equity interest transfer, Leopalace21 Vietnam will be excluded from the scope of consolidation of the Company.
1. Reason for transfer of equity interest
Leopalace21 Vietnam became a consolidated subsidiary of the Company on November 4, 2013. Since then, Leopalace21 Vietnam has been mainly responsible for the real estate agency business in addition to real estate management, management of serviced apartments and serviced offices as well as real estate development business.
The Company has been looking for a purchaser both in and outside of Japan in line with the policy of transferring or withdrawing from non-core and unprofitable businesses for drastically improve the financial base for increased corporate value, which we announced in the Notice Concerning Implementing Structural Reforms based on Strategic Review Results for Drastic Business Strategies Reconstruction dated on June 5, 2020. The Company determined to transfer the whole equity interest in Leopalace21 Vietnam to Chuwa Petroleum.
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2. Outline of the subsidiary to be transferred
(1) | Name | LEOPALACE21 VIETNAM CO., LTD. | ||
(2) | Address | 25F Lim Tower, 9-11 Ton Due Thang Street, Ben Nghe | ||
Ward, District 1, HCMC, Vietnam | ||||
(3) | Representative | Hidenobu Sato, Representative Director | ||
(4) | Business description | Real estate agency business and management business, | ||
Management of serviced apartments and serviced offices, | ||||
and Real estate development business | ||||
(5) | Founded | November 2013 | ||
(6) | Capital | 95,075 million VND* | ||
(7) | Major equity interest | Leopalace21 Corporation | 100% | |
holder and holding | ||||
ratio | ||||
(8) | Relationship between | In terms of capital: | The Company owns 100% equity | |
the Company and | interest in Leopalace21 Vietnam. | |||
Leopalace21 Vietnam | ||||
In terms of personnel: | The Company sends one | |||
representative director and one | ||||
employee on secondment. | ||||
In terms of business: | The Company has business | |||
relationship with Leopalace21 | ||||
Vietnam in referral of customers | ||||
and transaction. | ||||
*The value is stated in the company registration certificate and different from the one stated in the audit report, which is 96,707 million VND.
3. Outline of the transferee of the equity interest in Leopalace21 Vietnam
(1) | Name | Chuwa Petroleum Co., Ltd. |
(2) | Address | 9-1008 Minami 4-jo Nishi, Chuo-ku, Sapporo City, |
Hokkaido | ||
(3) | Representative | Kenjiro Sugisawa, Representative Director |
(4) | Business description | Energy business centered on gas stations operation, |
Sale of new and used cars and maintenance services | ||
business, | ||
Real estate business for commercial properties and rental | ||
apartments, and | ||
Human resource services business specialized in | ||
Vietnamese | ||
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(5) | Founded | December 1954 | |
(6) | Capital | 48 million yen | |
(7) | Major shareholders | Kenjiro Sugisawa | 65.9% |
and shareholding ratio | Sugi Corporation | 16.0% | |
Koutaro Sugisawa | 5.5% | ||
Hiroshi Sugisawa | 2.9% | ||
(8) | Relationship between | In terms of capital: | None |
the Company and | |||
In terms of personnel: | None | ||
Chuwa Petroleum | |||
In terms of business: | None | ||
4. Amount of equity interest transferred, value of the transfer and interest holding before and after the transfer
(1) | Amount of owned equity | 95,075,000,000 VND |
interest before the | ||
transfer | ||
(2) | Amount of owned equity | 95,075,000,000 VND |
interest to transfer | ||
(3) | Value of the transfer | Due to confidential liability between the parties, the |
value of the transfer is not disclosed. The value is | ||
however determined by negotiations with the | ||
counterpart through a fair process. | ||
(4) | Amount of owned equity | None |
interest after the transfer | ||
5. | Time schedule | |
(1) | Date of concluding the | January 15, 2021 |
equity interest transfer | ||
agreement | ||
(2) | Effective date of equity | April 1, 2021 (planned) |
interest transfer | ||
6. Future Outlook
We do not believe the impact of this matter on our earnings forecast for the year ending
March 2021 is material enough although it works to reduce the consolidated operating loss since Leopalace21 Vietnam has been continuing to record a deficit. We will promptly disclose any issues that need to be published due to further development.
END
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Leopalace21 Corporation published this content on 18 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 January 2021 00:05:03 UTC