DENSO Corporation (TSE:6902) offered to acquire the remaining 58.1% stake in Jeco Co.,Ltd. (TSE:7768) from a group of shareholders in mid-July 2020. DENSO Corporation (TSE:6902) entered into a share exchange agreement to acquire remaining 58.1% stake in Jeco Co.,Ltd. (TSE:7768) from a group of shareholders for ¥2.6 billion on December 7, 2020. As per the terms of the agreement, for each share of Jeco, 0.55 shares of DENSO Corporation will be issued, resulting in the issuance of a total of 0.45 million shares of DENSO. Upon completion, Jeco which will become a wholly owned subsidiary of DENSO and the shares of Jeco will be delisted from the Tokyo Stock Exchange. The common shares of Jeco are scheduled to be delisted as of March 30, 2021.

The transaction is subject to Jeco's shareholder approval. The transaction is unanimously approved by Jeco's Board of Directors and by the Board of Directors of DENSO. The extraordinary shareholder meeting of Jeco shareholders is scheduled to be held on February 5, 2021. Jeco established a Special Committee to evaluate the transaction. The transaction is expected to be completed by April 1, 2021. The impact of the transaction on DENSO's consolidated earnings is currently expected to be minimal. Uruma Law Offices; and Anderson Mori & Tomotsune LPC acted as legal advisors to DENSO Corporation. TMI Associates acted as legal advisor to Jeco Co.,Ltd. Nomura Securities Co., Ltd. acted as third-party calculation agent to DENSO and Mizuho Securities Co., Ltd. acted as third-party calculation agent to Jeco. Mizuho Financial Group, Inc. (TSE:8411) acted as financial advisor to Jeco. Ken Lebrun of Davis Polk & Wardwell LLP acted as legal advisor and Nomura Securities Co., Ltd. acted as financial to DENSO.