Worth reading
73In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Deterioration
Direction inferred from the company’s description.Scale
1150
¥ millionWording
Conditional
How definitive the wording is.This transaction
This transaction (this company split, this share transfer and this intra-group reorganization)CounterpartyLin Yin International Investment Co., Ltd.
Disclosing companyMitsubishi Electric Corporation
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
Development, production, sale and servicing of automotive equipment and other products
Location Chiyoda-ku, TokyoShare capital ¥10,060 millionDate of incorporation 1 April 2024
Net Sales¥657,565 million (fiscal year ending March 2026)
Operating profit¥13,183 million (fiscal year ending March 2026)
Net income for the current fiscal year¥35,777 million (fiscal year ending March 2026)
Net assets¥90,039 million (fiscal year ending March 2026)
Consideration and expenses
Acquisition price¥115 billion (estimated amount)
Type of ConsiderationCash
Amount of extraordinary income (loss)Impairment loss of approximately ¥100 billion (expected to be recognized in the consolidated financial statements for the fiscal year ending March 2027)
Impact on Business Performance
An impairment loss of approximately ¥100 billion is expected to be recognized under “Other gains and losses” in the consolidated financial statements for the fiscal year ending March 2027. The consolidated earnings forecast is currently under review, including the impact of other factors.
Procedures and assumptions
Valuation methodologyThe parties agreed on an enterprise value of ¥320 billion for the business and an equity value of ¥230 billion, taking into account changes in assets after execution of the agreement.
Conditions Precedent to ExecutionObtaining approval from the relevant authorities under domestic and overseas competition laws, among other conditions
Management structure after acquisitionFollowing the company split, there will be no changes to the name, location, title or name of the representative, business activities or fiscal year-end of the transferee company. The amount of capital is yet to be determined. Mitsubishi Electric Mobility is expected to change from a consolidated subsidiary of Mitsubishi Electric to an equity-method affiliate from the fiscal year ending March 2028. Employee treatment: not disclosed
| Item | Details |
|---|---|
| Transaction name | This transaction (this company split, this share transfer and this intra-group reorganization) |
| Counterparty name | Lin Yin International Investment Co., Ltd. |
| Name of the Subject Company | Mitsubishi Electric Mobility Corporation |
| Business Description of the Subject Company | Development, production, sale and servicing of automotive equipment and other products |
| Location of the Subject Company | Chiyoda-ku, Tokyo |
| Capital Stock of the Subject Company | ¥10,060 million |
| Date of Establishment of the Subject Company | 1 April 2024 |
| Net Sales of the Subject Company | ¥657,565 million (fiscal year ending March 2026) |
| Operating Profit of the Subject Company | ¥13,183 million (fiscal year ending March 2026) |
| Net Income of the Subject Company | ¥35,777 million (fiscal year ending March 2026) |
| Net Assets of the Subject Company | ¥90,039 million (fiscal year ending March 2026) |
| Acquisition price | ¥115 billion (estimated amount) |
| Type of Consideration | Cash |
| Number of shares acquired | 503 shares (50% voting rights ownership) |
| Voting rights ownership percentage | Before 100% → after 50% |
| Amount of extraordinary income (loss) | Impairment loss of approximately ¥100 billion (expected to be recognized in the consolidated financial statements for the fiscal year ending March 2027) |
| Impact on Business Performance | An impairment loss of approximately ¥100 billion is expected to be recognized under “Other gains and losses” in the consolidated financial statements for the fiscal year ending March 2027. The consolidated earnings forecast is currently under review, including the impact of other factors. |
| Date of board resolution | 16 October 2026 |
| Contract Date | 16 October 2026 |
| Execution Date / Effective Date | October 2027 (scheduled) |
| Valuation methodology | The parties agreed on an enterprise value of ¥320 billion for the business and an equity value of ¥230 billion, taking into account changes in assets after execution of the agreement. |
| Conditions Precedent to Execution | Obtaining approval from the relevant authorities under domestic and overseas competition laws, among other conditions |
| Management structure after acquisition | Following the company split, there will be no changes to the name, location, title or name of the representative, business activities or fiscal year-end of the transferee company. The amount of capital is yet to be determined. Mitsubishi Electric Mobility is expected to change from a consolidated subsidiary of Mitsubishi Electric to an equity-method affiliate from the fiscal year ending March 2028. Employee treatment: not disclosed |
Items this document does not state (9)
Expenses other than the acquisition priceMerger ratio/share exchange ratioTender offer priceMinimum number of shares to be purchasedTender offer periodFunding arrangementsGoodwill amountIndependent valuation institutionSpecial Committee
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.To combine Mitsubishi Electric Mobility's technology and development capabilities in electric powertrains, software and controls with Hon Hai Precision Industry's speed, scale and strengths in market expansion, thereby providing a high-quality, Japan-developed EV platform.
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