Kintetsu Corporation cancelled the acquisition of additional 50% stake in Hokko Daiwa Taxi KK from Hakone Kogen Hotel Co. Ltd and other seller.
February 24, 2014 at 11:00 pm EST
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Kintetsu Corporation (TSE:9041) entered into contract to acquire an additional 50% stake in Hokko Daiwa Taxi KK from Hakone Kogen Hotel Co. Ltd and other seller for ¥1 billion in stock on February 25, 2013. Kintetsu Corporation will acquire 0.3 million shares and will issue 8.6 shares for each share of Hokko Daiwa Taxi KK. In implementing the share exchange, when the total number of common shares involved in share purchase claims by Kintetsu's shareholders pursuant to Article 797 of Japan's Corporate Law exceeds 2.5 million in the period of 20 days counting back from the effective date, the share exchange will be cancelled. Prior to the transaction, Kintetsu Corporation will acquire 25% stake in Hokko Daiwa Taxi KK from its wholly owned subsidiaries Kintetsu Taxi Co., Ltd., Mie Kintetsu Taxi Company Ltd., and Nagoya Kintetsu Taxi Company Ltd. so the upon completion, Hokko Daiwa will be wholly owned by Kintetsu.
For the year ended December 2011, Hokko Daiwa Taxi had net assets of ¥2.01 billion, total assets of ¥2.77 billion, sales of ¥549 million, operating profit of ¥2 million, current profit of ¥39 million, and net income of ¥29 million. Board of Directors of Kintetsu Corporation and Hokko Daiwa Taxi resolved the transaction on February 25, 2013. The meeting of Hokko Daiwa Taxi's shareholders will held on July 22, 2013 to approve the transaction. The transaction is expected to close on July 25, 2013. The impact of the share exchange on Kintetsu's consolidated and non-consolidated performance is negligible. Osaka Tax Corporation calculated share exchange ratio for Kintetsu Corporation.
Kintetsu Corporation (TSE:9041) cancelled the acquisition of additional 50% stake in Hokko Daiwa Taxi KK from Hakone Kogen Hotel Co. Ltd and other seller on February 25, 2014.
Kintetsu Group Holdings Co.,Ltd. is a Japan-based company mainly engaged in the transportation business. The Company operates in five business segments. The Transportation segment is engaged in the provision of railway, bus and taxi services, the railway facilities maintenance business and other transportation related business, as well as the operation of tourist facilities. The Real Estate segment is engaged in the sale, leasing and management of real estate. The Distribution segment is engaged in the operation of department stores, retail stores and station stores, as well as the food business. The Hotel and Leisure segment is engaged in the operation of hotels, movie theaters and aquariums, as well as the travel business. The Others segment is engaged in the general broadcasting business, the telecommunications business, the information processing business and the insurance agency business.
KINTETSU GROUP HOLDINGS CO.,LTD. 
