Kitanihon Spinning Co., Ltd. (TSE:3409) entered into a share exchange agreement to acquire Chubu Yakuhin Co., Ltd. from HDD Singapore PTE. Ltd. for ¥33.2 million on December 10, 2020. As per the agreement, Kitanihon Spinning Co., Ltd. will issue 0.15 million shares to acquire 2960 shares of Chubu Yakuhin at an exchange ratio of 50.77 shares of Kitanihon Spinning for each share of Chubu Yakuhin. Upon completion, Chubu Yakuhin Co., Ltd. will become a wholly owned subsidiary of Kitanihon Spinning Co., Ltd. For the fiscal year ending March 2020, Chubu Yakuhin Co., Ltd. reported sales of ¥130 million, nil operating income, total common equity of ¥12 million, net loss of ¥1 million and total assets of ¥99 million. The transaction is subject to approval by shareholders of Chubu Yakuhin Co., Ltd. at a general meeting to be held on December 21, 2020. The transaction has been approved by the Board of Kitanihon Spinning Co., Ltd. The transaction is expected to be completed by January 12, 2021.