Reorganization of a Listed Subsidiary and Response to Conflicts of Interest
First written in FY2024-Q3. 1 of 2 entries say "Achieved", first in FY2025. Latest entry: FY2025.
0 other companies' latest entry also says "Achieved".
- FY2025AchievedAnnual report
「Due in part to 株式会社コスモスイニシア becoming an equity-method affiliate from a consolidated subsidiary in the previous consolidated fiscal year」
The partial transfer of shares in COSMOS INITIA Co.,Ltd. was completed, and the change from a consolidated subsidiary to an equity-method affiliate was reflected in the results. - FY2024-Q3First statedAnnual report
「In the Seventh Medium-Term Management Plan announced on 13 May 2022 for fiscal 2022–2026, we identified achieving both profit growth and improved capital efficiency through portfolio optimisation as a key theme for building a sustainable growth model. We have also considered various options for rebuilding the growth strategy of our subsidiary COSMOS INITIA Co.,Ltd. At the same time, further strengthening governance is another important theme of the plan. As structural conflicts of interest involving listed subsidiaries have been identified as an issue under the Corporate Governance Code and elsewhere, we also recognised the fact that both the parent company and a consolidated subsidiary are listed as one of our challenges.」
Indicated plans to transfer 8,480,000 shares of COSMOS INITIA Co.,Ltd. to Kyoritsu Maintenance, reducing the ownership ratio from 64.22% to 39.17% and changing its status from a consolidated subsidiary to an equity-method affiliate on 26 February 2024. This links growth through collaboration among the 3 companies with addressing structural conflicts of interest between listed parent and subsidiary companies.