Meitetsu Transport Co.,Ltd. agreed to acquire Shinsyu Meitetsu Transport Company Ltd for ¥4 billion.
December 24, 2015
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Meitetsu Transport Co.,Ltd. (NSE:9077) agreed to acquire remaining 81.21% stake in Shinsyu Meitetsu Transport Company Ltd from Nagoya Railroad Co., Ltd. (TSE:9048), Takeru Koide, Yuji Maruyama and Mamoru Komatsu for ¥4 billion on December 25, 2015. Under the terms of the transaction, Meitetsu Transport will issue 8.14 million shares of its common stock at the rate 1.1 shares of Meitetsu Transport per 1 share of Shinsyu Meitetsu Transport outstanding. For the period ended March 31, 2015, Shinsyu Meitetsu Transport Company Ltd had sales of ¥17.9 billion, total assets of ¥13.7 billion, net assets of ¥3.4 billion, operating profit of ¥553 million and net income of ¥387 million.
The transaction is subject to approval of shareholders and Boards of Directors of Meitetsu Transport and Shinsyu Meitetsu Transport Company Ltd. The transaction is expected to close by April 1, 2016. Nakamura, Tsunoda & Matsumoto acted as the legal advisor to Meitetsu Transport Co., Ltd. Daiwa Institute of Research acted as the valuer for Meitetsu Transport Co.,Ltd. and Asahi Tax Corporation acted as the valuer for Shinsyu Meitetsu Transport.
Nagoya Railroad Co., Ltd. is mainly engaged in the provision of transportation services. The Company operates through five business segments. The Traffic segment provides rail, bus, taxi passenger transportation services. The Transportation segment is engaged in trucking and marine transportation services. The Real Estate segment is engaged in the leasing and sales of real estate. The Leisure Service segment is engaged in the hotel, tourism, sightseeing facilities and advertising agency businesses. The Distribution segment is engaged in the department store and other retail businesses. The others business is engaged in the maintenance and construction of facilities, the airline business, the information processing business, the construction business, as well as the provision of information management and insurance services.
NAGOYA RAILROAD CO., LTD. 
