Tokai Electronics to Acquire Seidensha Co. Shares for Full Subsidiary Status

TOKYO, Jun 23 (Pulse News Wire) – Tokai Electronics (8071.NG) resolved at its board meeting held, to acquire all outstanding shares of Seidensha Co. excluding treasury shares, aiming to make Seidensha a wholly-owned subsidiary.

The agreement includes basic principles for future negotiations leading to a final contract, confidentiality clauses, and mutual obligations to negotiate in good faith. Seidensha operates in the northern Kanto region with strong sales networks and overseas bases in Hong Kong and Vietnam. By integrating Seidensha's customer base and technological expertise, Tokai Electronics plans to enhance service offerings, expand into new markets, and strengthen its position in Southeast Asia. Additionally, the acquisition will bolster hardware-to-software solutions across various sectors.

Key details of the transaction include acquiring 57,947 common shares from Takazawa Hidekazu and other existing shareholders, resulting in Tokai Electronics holding 100% voting rights. The final share purchase price remains undisclosed due to confidentiality agreements but will be determined based on comprehensive due diligence results. Scheduled milestones for the deal include signing the definitive agreement on July 30, 2026, and completing the share transfer on October 1, 2026. The impact on Tokai Electronics' fiscal year ending March 2027 is currently being assessed, with further updates expected as needed.

Post-acquisition, Tokai Electronics intends to leverage Seidensha’s strengths through phased integration efforts focusing on synergies in operations, international business, and technology development.