Notice Regarding the Commencement of a Tender Offer by Our Consolidated Subsidiary SEIBU REALTY Co., Ltd. for Egrand Corporation (Securities Code: 3294)

Overview of the Tender Offer

SEIBU REALTY Co., Ltd. will commence a tender offer from April 1, 2026, to acquire all common shares and stock acquisition rights of Egrand Corporation with the purpose of making it a wholly-owned subsidiary. The purchase price is set at 4,858 yen per share, representing a premium of approximately 151.71% over the closing price on the Tokyo Stock Exchange Standard Market. The planned number of shares to be purchased is 6,174,876 shares, with a total purchase price of approximately 29,997,547,608 yen. The tender offer period spans 30 business days, and the lower limit of the planned number of shares to be purchased is set at 4,105,200 shares.

Background and Purpose of the Tender Offer

The SEIBU REALTY Group, as part of its growth strategy centered on the real estate business, aims to leverage Egrand’s management resources to enhance fundraising capabilities, expand business areas, and strengthen human resource development. Egrand primarily operates in the used housing refurbishment business and seeks sustainable growth amid intensifying market competition. Following the tender offer, SEIBU REALTY plans to stabilize management and maximize synergy effects by making Egrand a wholly-owned subsidiary.

Fairness Assurance Measures

In determining the tender offer price, SEIBU REALTY secured a stock valuation report from an independent third-party appraisal firm (Deloitte Tohmatsu), and the independent special committee of the target company conducted careful examination and provided recommendations. The purchase price exceeds the market stock price, comparable company analysis, and the upper limit of the discounted cash flow (DCF) valuation results, significantly exceeding the premium levels based on the METI’s fair M&A guidelines. A bidding process was conducted, and the highest price among multiple proposals was selected.

Post-Tender Offer Policy

Upon the successful completion of the tender offer, Egrand will become a wholly-owned subsidiary, and the management structure will generally respect the current organization, with decisions made through consultation. Employment for employees is expected to continue in principle. If the tender offer is unsuccessful, steps such as stock acquisition requests and squeeze-out procedures via share consolidation based on the Companies Act are planned. Egrand’s shares are expected to be delisted.