Notice of Share Transfer Agreement for Acquisition of Shares of Ark Real Estate Co., Ltd. Accompanied by Company Split (Becoming a Consolidated Subsidiary)

Overview of M&A

ESCON Corporation concluded a share transfer agreement on March 19, 2026, to acquire shares and make Ark Real Estate Co., Ltd. a consolidated subsidiary, based on an absorption-type company split carried out by Ark Real Estate. The number of shares acquired is 1,800 shares, resulting in 100% ownership after acquisition. The acquisition price is 11,000 million yen (including expected incidental expenses of 31 million yen), judged to be fair and reasonable based on net asset value at market price. Ark Real Estate operates real estate leasing and asset management businesses primarily in the Kansai region. For the fiscal year ending March 2025, its sales were 39,371 million yen and operating income was 5,831 million yen.

Future Outlook and Impact

The execution date of this share acquisition is scheduled for October 30, 2026, and the impact on the consolidated financial results for the current period is expected to be minor. ESCON has set the goal of increasing the proportion of recurring revenue in its fifth medium-term management plan, and aims to strengthen profitability and stabilize its management base through this acquisition. The company states that it will promptly disclose any matters that should be announced in the future.