MG Home Co., Ltd. agreed to acquire Archish Gallery Corporation from VT Holdings Co. Ltd. for approximately ¥770 million.
May 27, 2014 at 12:00 am EDT
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MG Home Co., Ltd. (TSE:8891) agreed to acquire Archish Gallery Corporation (Archish') from VT Holdings Co. Ltd. (JASDAQ:7593) for approximately ¥770 million in stock on May 27, 2014. MG Home Co., Ltd. will allocate 135.6 shares for transfer for every share or Archish. MG Home will issue 0.82 million of common shares in exchange. Of the shares that will be furnished 0.07 million shares are treasury shares and 0.76 million shares will be newly issued common shares. As of March 2014, Archish Gallery Corporation reported sales of ¥2.28 billion, operating profit of ¥71 million, net assets of ¥507 million, total assets of ¥1.3 billion and net profit of ¥95 million. Approval of the share exchange contract by the shareholding commission of Archish is due on June 23, 2014. The transaction has been approved by Board of Directors of MG Home Co., Ltd. The transaction is expected to be closed by August 1, 2014.
Baker & McKenzie (Gaikokuho Joint Enterprise) acted as legal advisor to VT Holdings Co. Ltd. and Hiroshi Miyauchi acted as legal advisor to MG Home Co., Ltd. Falcon Research & Consulting, Ltd. acted as advisor to Archish Gallery Corporation and MG Home Co., Ltd.
VT Holdings Co Ltd is a Japan-based company mainly engaged in the car sales related business mainly consisting of dealership business, car rental business and car export business. The Company operates through two business segments. The Automobile Sales Related segment is involved in the car sales related business including new car dealership business, which sells new and used cars and repairs automobiles, the import car importer business, used car export business, car rental business and others. The Housing Related segment is involved in the condominium sales, single-family home sales, construction contracts and others. The Company is also involved in the group-wide management business.