Worth reading
55In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Neutral
Direction inferred from the company’s description.Scale
100
Percentage of equity interests transferred (%)Wording
Conditional
How definitive the wording is.This transaction
Transfer of equity interestDisclosing companyKATO WORKS CO.,LTD.
The voting-rights ratio is the share of the votes exercisable at a shareholders’ meeting that will be held after this transaction.
TimelineThe spacing between the points is proportional to the actual number of days.
Target company
Manufacture and sale of products and parts, including hydraulic excavators
Location Jimei District, Xiamen, Fujian Province, ChinaShare capital RMB 30 millionDate of incorporation 22 October 2004
Net Sales¥625 million (fiscal year ended December 2025)
Operating profit¥143 million (fiscal year ended December 2025)
Net income for the current fiscal year¥104 million (fiscal year ended December 2025)
Net assets¥429 million (fiscal year ended December 2025)
Consideration and expenses
Acquisition priceNot disclosed pursuant to the confidentiality agreement
Amount of extraordinary income (loss)A gain on the transfer of equity interests is expected, but the amount and quarter of recognition are not disclosed
Impact on Business Performance
The gain on the transfer of equity interests has not been incorporated into the earnings forecast for the fiscal year ending March 2027. If the accounting treatment in the consolidated financial statements is finalized and it is determined that the forecast needs to be revised, the Company will make a timely disclosure.
Procedures and assumptions
Valuation methodologyDetermined through consultation and agreement between the parties (the specific valuation method is not disclosed)
Management structure after acquisitionThe management structure following the acquisition of the target company is not disclosed. Even after the operations of the 2 Chinese consolidated subsidiaries end, the Company will continue supporting local customers and its suppliers from its liaison offices in Kunshan and Xiamen, and will maintain a similar structure for the time being.
| Item | Details |
|---|---|
| Transaction name | Transfer of equity interest |
| Name of the Subject Company | 加藤中駿（厦門）建機有限公司 |
| Business Description of the Subject Company | Manufacture and sale of products and parts, including hydraulic excavators |
| Location of the Subject Company | Jimei District, Xiamen, Fujian Province, China |
| Capital Stock of the Subject Company | RMB 30 million |
| Date of Establishment of the Subject Company | 22 October 2004 |
| Net Sales of the Subject Company | ¥625 million (fiscal year ended December 2025) |
| Operating Profit of the Subject Company | ¥143 million (fiscal year ended December 2025) |
| Net Income of the Subject Company | ¥104 million (fiscal year ended December 2025) |
| Net Assets of the Subject Company | ¥429 million (fiscal year ended December 2025) |
| Acquisition price | Not disclosed pursuant to the confidentiality agreement |
| Voting rights ownership percentage | Before 100％ → after ０％ |
| Amount of extraordinary income (loss) | A gain on the transfer of equity interests is expected, but the amount and quarter of recognition are not disclosed |
| Impact on Business Performance | The gain on the transfer of equity interests has not been incorporated into the earnings forecast for the fiscal year ending March 2027. If the accounting treatment in the consolidated financial statements is finalized and it is determined that the forecast needs to be revised, the Company will make a timely disclosure. |
| Date of board resolution | 10 July 2026 |
| Execution Date / Effective Date | October 2026 (scheduled) |
| Valuation methodology | Determined through consultation and agreement between the parties (the specific valuation method is not disclosed) |
| Management structure after acquisition | The management structure following the acquisition of the target company is not disclosed. Even after the operations of the 2 Chinese consolidated subsidiaries end, the Company will continue supporting local customers and its suppliers from its liaison offices in Kunshan and Xiamen, and will maintain a similar structure for the time being. |
Items this document does not state (14)
Counterparty nameExpenses other than the acquisition priceType of ConsiderationMerger ratio/share exchange ratioTender offer priceMinimum number of shares to be purchasedTender offer periodNumber of shares acquiredFunding arrangementsGoodwill amountContract DateIndependent valuation institutionSpecial CommitteeConditions Precedent to Execution
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.After resolving to dissolve and liquidate the subsidiary, the Company was considering how to dispose of its assets. It reached agreement on the terms with a Chinese company that was considering acquiring the subsidiary, and therefore will cancel the dissolution and liquidation and transfer its equity interest.
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