Wedge Holdings Amends Parent Company Guarantee Exercise and Subsidiary Transfer Announcement

TOKYO, Aug 05 (Pulse News Wire) – Wedge Holdings CO.,LTD. (2388.T) corrected an earlier announcement related to exercising guarantees against its parent company, Showa Holdings, and transferring subsidiaries.

The correction was made due to insufficient proofreading of the initial statement's title. On June 26, 2026, Wedge Holdings exercised a pledge right over shares held by Showa Holdings as collateral for a loan amounting to ¥1.489 billion. As a result, Wedge Holdings acquired four subsidiary companies. However, subsequent discussions with audit firms led to the decision to exclude these acquisitions from the consolidated scope, treating the transactions as non-existent for accounting purposes. The exercise of the guarantee involved dealings with controlling shareholder Showa Holdings. To ensure fairness and protect minority shareholders, the transaction adhered to the company’s Corporate Governance Guidelines.

Independent directors reviewed the conditions of the deal, ensuring they aligned with general market standards and did not favor the controlling shareholder. Additionally, independent legal advice confirmed the transaction would not harm minority interests. Furthermore, Wedge Holdings plans to sell off all acquired subsidiary shares within August 2026. However, on September 12, 2025, Showa Holdings filed for a temporary injunction prohibiting the sale of these shares. Despite this, Wedge Holdings proceeded with the sale according to the original plan on July 17, 2026. The company continues to pursue recovery of the remaining loan balance from Showa Holdings through various means.