On August 17, 2020, LIM Advisors Limited noted the article in today's Nikkei Business concerning a possible proposal for a counter-bid for NichiiGakkan and subsequent statements by the Company and Baring Private Equity Asia (BPEA). LIM Advisors stated that the news reinforce its concerns around the governance process for the ongoing tender offer for all the common stock of the Company by K.K. BCJ-44 (Tender Offer). LIM Advisors stated that regardless of the level of the discussion made between the Company and/or members of the Board of Directors of the Company and any potential or actual counterbidder, if an approach, an informal proposal or formal proposal has been made, the issues surrounding the matter should be immediately explained and disclosed by the Company. LIM Advisors urged the Board to seek an extension to the current tender offer so that investors can properly consider the facts and for the Board to consider all possible counterbids. LIM Advisors expressed its view that the tender offer of ¥1,670 per share undervalues the Company and that the fair value is approximately ¥2,400 per share and believes that the Board should reconsider its recommendation of the tender offer.