Source disclosure: March 02, 2026, 11:30 JST
Published by Pulse News Wire: March 02, 2026, 11:36 JST
DIGITAL HEARTS HOLDINGS Co.,Ltd. [3676.T]
TOKYO, Mar 02 (Pulse News Wire) – Digital Hearts Holdings CO.,LTD. (3676.T) announced today that its board of directors decided to cancel the planned equity distribution spin-off and listing of its subsidiary, AGESt.
The decision was made due to cautious market conditions surrounding IT-related stocks amid rapid advancements in AI technology and tools, which have led to a decline in valuation levels. In light of this judgment, the company also resolved to implement alternative shareholder returns through increased dividend payouts and the introduction of a progressive dividend policy, along with a shareholder benefit program.
Despite the cancellation of the spinoff plan, the group remains committed to advancing its growth strategies in both the DH Group's entertainment content services and the AGESt Group's enterprise system testing and security services. The impact on the company’s fiscal year ending March 2026 is expected to be minor; however, any necessary adjustments to earnings forecasts or additional disclosures will be promptly communicated.
For further background on the previous developments related to the spinoff and listing plans, refer to the press releases dated May 11, 2023, and October 20, 2023.
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