KDDI : Posted Summary and Q&A of Data Center Business presentation in Canada (Toronto)

For presentation materials from the joint press conference held prior to this overview of the conference, please click bellow.
Presentation materials

Summary

For details, please refer to the news release and the timely disclosure (766KB).

On February 6, 2024, Mitsubishi Corporation (MC), KDDI CORPORATION (KDDI), and Lawson, Inc. (Lawson), announced that the companies signed a capital business partnership agreement to aim for creation of new consumer values by integrating "Real, Digital, and Green" elements. Accordingly, KDDI will commence a TOB for Lawson in April 2024 and expect to complete the transaction around September (planned). If the closing occurs as planned, KDDI's ownership ratio in Lawson will be 50.0% (currently 2.1%), Lawson will be delisted, and for accounting purposes will be treated as a jointly controlled company by KDDI and MC.
The expected tender offer price per share is 10,360 yen, for a total amount of approximately 497.1 billion yen.

For nearly five years since the capital and business alliance concluded in December 2019, KDDI and Lawson have been working on coordination to make their stores and services more attractive and expand the Ponta economic sphere. KDDI has approximately 31 million mobile IDs and 2,200 stores, and Lawson has 14,600 convenience stores and 10 million visitors per day, the implementation of this project will enable us to establish one of the leading consumer contact points in Japan with a total of approximately 17,000 stores.
In addition, KDDI and Lawson each have a number of group assets, such as entertainment and finance, that can provide synergies, as well as many of our own assets, such as insurance, Energy Business, and satellite telecommunications, that can help enhance the functionality of the convenience store, thereby expanding business opportunities by contributing to the realization of the convenience store of the future.
The decision to support Lawson's growth strategy was based on the belief that supporting Lawson's growth strategy will lead to the strengthening of the infrastructure function of convenience stores, which in turn will enhance the corporate value of the two companies.

The companies will consider measures to enhance convenience store functions, improve the customer experience value combined with the latest technology, achieve greater efficiency in store operations, and achieve a green and sustainable consumer society. Specific measures will be discussed in depth after closing, but we will promote business coordination in the three business areas of Real, Digital, and Green, leveraging the assets and strengths of each company.

(Reference) Examples of coordination measures

• Providing new services such as telecommunications, banking/insurance, and health care through online remote customer service to improve convenience at LAWSON stores.
• Making LAWSON stores smarter and more advanced through the use of the latest technologies such as DX, XR, and remote delivery.
• Converting LAWSON stores into disaster prevention and preparedness centers through the installation of solar power generation and EV charging spots, and the use of satellite telecommunications.