Sapporo Holdings Limited
Notice Regarding Change in Consolidated Subsidiary Due to Introduction of External Capital into Real Estate Business
Sapporo Holdings has resolved the introduction of external capital into its consolidated subsidiary Sapporo Real Estate Development Co., Ltd. by SPARK LLC, a fund backed by PAG Investment Management Co., Ltd. and Kohlberg Kravis Roberts & Co. L.P., and plans to transfer voting rights in three phases starting June 2026, at an enterprise value of 477 billion yen.
Key Figures
- Transaction Type: Introduction of External Capital (Share Transfer)
- Target Company: Sapporo Real Estate Development Co., Ltd.
- Transaction Value: 477 billion yen (Enterprise Value Basis)
- Scheduled Completion: June 2026 (First Closing)
- Expected Synergies: Enhancement of corporate value through concentration of management resources on alcoholic beverage business
AI要約
Transaction Overview
Sapporo Holdings Limited has resolved and signed an agreement for a series of investments by SPARK LLC, a fund invested by PAG Investment Management Co., Ltd. and Kohlberg Kravis Roberts & Co. L.P., into its wholly-owned subsidiary Sapporo Real Estate Development Co., Ltd. (SRE). The transaction value, based on enterprise value including SRE’s borrowings, is 477 billion yen. The transaction will be executed in three closings: at the first closing (scheduled for June 1, 2026), SPARK will acquire 51.0% of SRE’s voting rights; subsequent acquisitions will occur on June 1, 2028, and June 1, 2029, with the final transfer of all voting rights planned. SRE will be excluded from the Company's consolidated subsidiaries.
Purpose and Background of the Transaction
As part of a strategy to enhance corporate value in the medium to long term by focusing management resources on the competitive alcoholic beverage business, the Company aims to off-balance its real estate business and allocate the resulting funds to growth investments in the alcoholic beverage sector. Through the introduction of external capital, SRE intends to increase the value of its property portfolio and pursue sustainable growth. Candidate selection started in September 2024, and among multiple candidates, SPARK LLC's proposal was evaluated as most advantageous. The transaction is expected to generate capital gains of approximately 330 billion yen, with funds planned to be used for growth investment, strengthening the financial base, and shareholder returns.
