Notice on the Progress of the Tender Offer by MM Holdings Co., Ltd. for Shares of Makino Milling Machine Co., Ltd. (Securities Code: 6135)

Progress of the Tender Offer and Overview of the Suspension Recommendation

MM Holdings Co., Ltd. announced on June 3, 2025, the planned start of a tender offer to acquire all ordinary shares of Makino Milling Machine Co., Ltd. and had been advancing procedures to obtain the necessary approvals. However, on April 22, 2026, the Minister of Finance and the Minister of Economy, Trade and Industry issued a recommendation under Article 27, Paragraph 5 of the Foreign Exchange and Foreign Trade Act to suspend this tender offer and subsequent share acquisitions. The reason for the recommendation is that the high-performance machine tools produced by the target company have a high potential for military diversion, and access to sensitive information by the tender offeror raises national security concerns.

Future Actions and Impact on Investors

The tender offeror is expected to notify the authorities by May 1, 2026, whether they will accept the recommendation, and is currently considering future steps. Despite approximately ten months of consultation with the authorities, the recommendation has significantly altered the prospects for commencing the tender offer. Investors should closely monitor the content of this recommendation and future disclosures. It should also be noted that procedures regarding this tender offer are conducted in Japanese and differ from U.S. securities laws.