SG : Notice Regarding Execution of Sale of a Portion of Shares in Hitachi Transport System, Ltd.
July 01, 2022 at 02:33 am EDT
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July 1, 2022
NEWS RELEASE
Company name:
SG Holdings Co., Ltd
Representative:
Eiichi Kuriwada, Chairperson, CEO and President
(Code number: 9143 TSE Prime Market)
Inquiries:
Katsuhiro Kawanago, Director
(Corporate Planning)
(TEL +81 75-693-8850)
Notice Regarding Execution of Sale of a Portion of Shares in Hitachi Transport
System, Ltd.
SG Holdings Co., Ltd. (the "Company") hereby announces that it sold shares of Hitachi Transport System, Ltd. ("Hitachi Transport System") that the Company owns. As for the impact of this on the business performance, please refer to "Notice of Revisions to Earnings Forecast" disclosed on July 1, 2022.
1. Reasons for sale
SG Holdings Group partially hold shares of business partners (cross-shareholdings) that are deemed necessary and reasonable for the purpose of holding, such as maintaining and developing mid-to-long term business relationships and creating synergies and Hitachi Transport System's shares meet these criteria. In accordance with the Corporate Governance Code, the Company regularly examines the purpose of cross-shareholdings, the status of synergies, and returns on the cost of capital in order to verify continued shareholdings and appropriate holding levels.
Although we reduced our ownership ratio twice in the past in September 2020 and April 2021 for Hitachi Transport System shares, we have continuously examined the validity of the level of the ownership ratio.
Based on the results of these deliberations, the market's growing interest in cross-shareholdings in recent years, and the standards of proxy advisory firms, we have sold Hitachi Transport System's shares partially in order to further improve corporate governance and capital efficiency.
2. Details of Transaction
The company sold 2,000,000 shares of the Hitachi Transports System's shares(2.4% of total shares issued, excluding treasury stocks) that the Company owns in off-floor trading.
3. Impact on the business performance
As for the impact on net income attributable to owners of the parent for the year ending March 31, 2023 is expected to be 8 billion yen. Please refer to "Notice of Revisions to Earnings Forecast" disclosed on July 1, 2022 for more detail.
4. Future Alliance
Both companies will continue the alliance and make greater efforts to promote collaboration such as cooperation in the area of sales activities, joint use of infrastructure by sharing locations/vehicles, with the aim of creating synergies in business activities and achieving business growth for both companies
5. Schedule
(1)
Date of Board of Directors' approval
June 28, 2022
(2)
Date of sales execution of Hitachi
July 1, 2022
Transport System shares
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SG Holdings Co. Ltd. published this content on 01 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 July 2022 06:32:09 UTC.
SG Holdings Co Ltd provides delivery business, logistics business and real estate business. The Company operates in three business segments. The Delivery segment provides hikyaku express courier, hikyaku large size courier service, mail service, specified letter service, art transport, delivery agent and food delivery. The Logistics segment provides distribution processing, logistics system construction, inventory storage and delivery management, international courier service and international air and sea transportation. The Real Estate segment provides real estate leasing and management, real estate development, asset management. The Company is also engaged in the transportation non-life insurance agency business, the sale of truck fuel, maintenance and sale of transportation vehicles, development and operation of logistics systems, provision of cash-on-delivery services for courier services, and the provision of human resources centered on work outsourcing in logistics facilities.