Matsumotokiyoshi Holdings Co., Ltd. (TSE:3088) agreed in principle to acquire remaining 80.9% stake in cocokara fine Inc. (TSE:3098) from Segami Fudosan K.K., Hibiki Path Advisors Pte. Ltd., The Master Trust Bank of Japan, Ltd. and others for approximately ¥180 billion n January 31, 2020. The share exchange ration is 1.7:1, Matsumotokiyoshi Holdings will issue 40.8 million shares of cocokara fine.

As part of the plan, Matsumotokiyoshi would first boost its stake in cocokara fine to 20% by April 30, 2020 from less than 0.5% currently by acquiring new shares. Matsumotokiyoshi will then acquire remaining shares of cocokara fine next year. Matsumotokiyoshi and cocokara fine will set up a new holding company to integrate operations.

Post the transaction, cocokara fine will change its trade name to Cocokarafine Group Co., Ltd. Matsumotokiyoshi and cocokara fine plan to sign a final merger contract in February 2021. The combined company would start operating in October 2021. The transaction is subject to shareholders of Matsumotokiyoshi.

The transcation is approved by the shareholders of Matsumotokiyoshi on June 1, 2021. The deal is expected to be completed on October 1, 2021. Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. acted as financial advisor and Nomura & Partners acted as legal advisor to cocokara fine Inc. provided fairness opinion and Anderson Mori & Tomotsune LPC acted as legal advisor to Matsumotokiyoshi.