Kaga Electronics Co.,Ltd. (TSE:8154) signed an agreement to acquire Excel Co.,Ltd. (TSE:7591) from City Index Eleventh Co. Ltd. on December 9, 2019. Transaction will be executed upon City Index Eleventh making Excel Co., Ltd. a wholly owned subsidiary through share exchange for cash consideration and subsequently payment of dividend in kind being made to City Index Eleventh using a portion of assets owned by Excel as dividend property. Kaga Electronics plans to provide financing of around ¥8 billion to Excel as working capital on the execution date of the acquisition. Kaga Electronics intends to use its cash on hand for the payment of consideration. Post completion, Excel will become a wholly owned subsidiary of Kaga Electronics.

The transaction is subject to clearance required by competition laws from the Japan Fair Trade Commission and the Chinese Commercial Department. Transaction was resolved by the Board of Kaga Electronics. As on February 14, 2020, the deal is approved by the shareholders of Excel Co. Transaction is expected to close on April 1, 2020. In connection with the acquisition, Kaga Electronics anticipates recognition of extraordinary income in the fiscal year ending March 31, 2021.

Kaga Electronics Co.,Ltd. (TSE:8154) completed the acquisition of Excel Co.,Ltd. (TSE:7591) from City Index Eleventh Co. Ltd. on April 1, 2020.