RS Technologies ends capital tie-up talks with Jiangxi Shengtai Precision Optics

TOKYO, Jul 24 (Pulse News Wire) – RS Technologies CO.,LTD. (3445.T) announced today that it has decided not to proceed with a planned equity investment in Jiangxi Shengtai Precision Optics Limited Company through a rights issue subscription aimed at making the latter a consolidated subsidiary.

The decision was made during a board meeting held. The talks began on September 26, 2025, when RS Technologies initially disclosed plans to subscribe to a third-party allotment of shares in Jiangxi Shengtai, aiming to acquire approximately 51% shares via its wholly-owned subsidiary RSPDH (Easo Precision Components Huizhou Co., Ltd.). Subsequently, discussions continued amid delays related to tax incentives and other conditions associated with the transaction.

However, despite ongoing negotiations, the two parties failed to reach agreement on key terms, leading to the termination of the deal. Regarding future strategies, RS Technologies stated that it is currently reviewing its group's business direction. The company noted that the impact on its fiscal year ending December 2026 would be minor.

Any further developments requiring disclosure will be communicated promptly.