Notice of Subscription Agreement for Shares of Montedio Football Park Co., Ltd. for the Purpose of Constructing and Owning a New Stadium (Third-Party Allotment) and Subscription Agreement for Total Shares of Montedio Yamagata Co., Ltd. Operated as a J.League Club (Consolidation as a Subsidiary)

Overview of M&A

Escon Corporation has resolved to subscribe to 20,000 shares (2 billion yen) through a third-party allotment conducted by Montedio Football Park Co., Ltd. (MFP), which is established for the purpose of constructing and owning a new stadium in Tendo City, Yamagata Prefecture, resulting in a voting rights ownership ratio of 97.8%. Additionally, Escon plans to acquire 98 shares (111 million yen) of Montedio Yamagata Co., Ltd. (MY), the operator of the J.League club Montedio Yamagata, aiming to consolidate it as a subsidiary with a 98.0% voting rights ownership ratio. The share acquisitions are scheduled for June 30, 2026, subject to approval at the annual shareholders' meeting, J.League, and MY's consents.

Future Outlook and Impact

The impact of this transaction on the consolidated financial results for this fiscal year is expected to be minimal. Escon has experience in community development centered on sports facilities in Kitahiroshima City, Hokkaido, and intends to pursue sustainable regional revitalization by integrating new stadium development with club management. The formal share subscription will proceed upon completion of related corporate bylaw amendments and approval procedures.