Notice Regarding the Acquisition of Fixed Assets for the Production of Optical Fiber and Optical Fiber Cables | Furukawa Electric Co.,Ltd. (5801) timely disclosure

Worth reading

29Immaterial

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Direction

Improvement

Direction inferred from the company’s description.

Scale

1000

¥100 million

Wording

Avoiding a definitive answer

How definitive the wording is.

This transaction

Acquisition of fixed assets for the production of optical fiber and optical fiber cables

Execution Date / Effective DateOperations are scheduled to begin sequentially from the second half of FY2028 (mass production scheduled to begin)

Consideration and expenses

Acquisition priceTotal investment: approximately ¥100 billion (estimate)

Impact on Business Performance

The impact of this investment on consolidated results for the fiscal year ending March 2027 will be immaterial. The investment is expected to contribute to an increase in consolidated net sales as mass production begins at each site from the second half of FY2028 onward.

Procedures and assumptions

Conditions Precedent to ExecutionThe investment by BFFO will be finalized upon the conclusion of discussions with UCL.

This transaction
Item	Details
Transaction name	Acquisition of fixed assets for the production of optical fiber and optical fiber cables
Acquisition price	Total investment: approximately ¥100 billion (estimate)
Impact on Business Performance	The impact of this investment on consolidated results for the fiscal year ending March 2027 will be immaterial. The investment is expected to contribute to an increase in consolidated net sales as mass production begins at each site from the second half of FY2028 onward.
Execution Date / Effective Date	Operations are scheduled to begin sequentially from the second half of FY2028 (mass production scheduled to begin)
Conditions Precedent to Execution	The investment by BFFO will be finalized upon the conclusion of discussions with UCL.

Items this document does not state (27)

Counterparty nameName of the Subject CompanyBusiness Description of the Subject CompanyLocation of the Subject CompanyCapital Stock of the Subject CompanyDate of Establishment of the Subject CompanyNet Sales of the Subject CompanyOperating Profit of the Subject CompanyNet Income of the Subject CompanyNet Assets of the Subject CompanyExpenses other than the acquisition priceType of ConsiderationMerger ratio/share exchange ratioTender offer priceMinimum number of shares to be purchasedTender offer periodNumber of shares acquiredVoting rights ownership percentageFunding arrangementsGoodwill amountAmount of extraordinary income (loss)Date of board resolutionContract DateValuation methodologyIndependent valuation institutionSpecial CommitteeManagement structure after acquisition

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The company expects the data center market to grow against a backdrop of the widespread adoption of generative AI and the increasing sophistication of cloud services, driving medium- to long-term growth in demand for high-quality optical fiber cables. The order environment for rollable ribbon cables is also favorable, and the company says it has confirmed purchase commitments from customers, including long-term commitments.

How to read this page

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