Notice of Acquisition of Shares of Yuhara Engineering Service Co., Ltd. (Subsidiarization)

Overview of M&A and Subsidiarization

Zuiko Corporation will acquire shares of Yuhara Engineering Service to make it a subsidiary, and Yuhara Engineering, which is a wholly owned subsidiary of that company, will become a grand-subsidiary of the Zuiko Group. The acquisition aims to expand business in the automatic packaging machinery sector and strengthen the technology portfolio by integrating management resources of both companies to expand product lines and enhance development, production, and procurement capabilities. Number of shares to be acquired is 3,540 shares, consideration is calculated based on the fair value of net assets, and the voting rights ratio after acquisition will be 70%. A put option and call option will be set for the remaining 30% of shares.

Outlook and Impact

As a result of this transaction, Yuhara Engineering Service and Yuhara Engineering are expected to become consolidated subsidiaries of Zuiko Corporation. The financial impact is under review, and managerial integration will be deepened step by step with the aim of eventual full subsidiarization. Disclosures will be made as soon as matters requiring disclosure arise.