Osaki Electric to Transfer Subsidiary Shares to Boost Capital Efficiency

TOKYO, Jul 28 (Pulse News Wire) – Osaki Electric CO.,LTD. (6644.T) decided to transfer all shares of its subsidiary EDMI Electronics Sdn Bhd to Cicor Asia Pte.

Ltd. through a share transfer agreement. This move aims to enhance capital efficiency and optimize production systems. Under the deal, scheduled for completion by October 30, 2026, EDMI will divest its manufacturing operations while focusing on product development and software solutions.

The transaction involves transferring EESB's entire equity stake valued at approximately ¥1.2 trillion. Post-transfer, EDMI will retain key functions such as design, intellectual property management, quality standards, and customer service. Osaki Electric expects cost reductions, lower investment burdens, and improved free cash flow from this strategic shift towards an asset-light production model. Osaki Electric’s consolidated financial performance for fiscal years ending December 2023, 2024, and 2025 showed total assets of ¥965 million, ¥1.039 billion, and ¥1.093 billion respectively, with net sales declining from ¥914 million to ¥744 million.

The company plans to further strengthen investments in growth areas post-transition but refrains from disclosing anticipated profit improvements due to ongoing negotiations.