Kitahama Capital Partners to Sell Stake in Subsidiary SanTech

TOKYO, Jul 31 (Pulse News Wire) – Kitahama Capital Partners CO.,LTD. (2134.T) announced today that it has decided to sell its entire stake in subsidiary SanTech Corporation.

The sale, approved during a board meeting held on July 31, 2026, involves transferring all 2,040 shares of SanTech's common stock. SanTech was acquired in July 2023 to secure construction capabilities within the group’s renewable energy sector. However, due to the cessation of operations by SanTech's former partner Global Stage Co., Ltd. in July 2024, SanTech entered a dormant state. As of March 2026, SanTech had negative net assets and was debt-ridden, leading to the decision to divest. The transaction price was set at ¥1.

Additionally, the buyer proposed introducing SanTech to transactions related to educational institutions, which could potentially recover more than the initial investment amount of ¥20.4 million. SanTech, established on September 09, 2022, specializes in developing, operating, and maintaining renewable energy power plants. It holds a capital of ¥40 million and operates out of Tokyo, Minato Ku Shiba Ichi Choume14-4. The company's recent financial performance shows declining asset values and profitability, with total assets decreasing from ¥5.7 million in fiscal 2024 to ¥105 billion in fiscal 2026. The deal is expected to close on July 31, 2026, with the effective date also scheduled for the same day. The company anticipates recognizing a gain of ¥2.8 million as extraordinary income in the second quarter of fiscal 2027.

Any impact on the consolidated earnings forecast for fiscal 2027 will be communicated promptly if necessary.