Risk of deconsolidation and transition to equity-method accounting if WCP falls below a majority of voting rights
First written in FY2025-H1. 1 of 2 entries say "Materialised", first in FY2025. Latest entry: FY2025.
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- FY2025MaterialisedAnnual report
「From the current fiscal year, W-SCOPE CHUNGJU PLANT CO., LTD. (WCP) and its consolidated subsidiaries have been excluded from the scope of consolidation. A fund that had agreed to exercise its voting rights in the same manner as us partially sold its WCP shares, causing the voting rights to fall below a majority, and WCP was therefore excluded from consolidation.」
The risk of WCP being removed from consolidation after voting rights fell below a majority, which had been indicated in the previous interim period, materialised, and WCP became an equity-method associate. - FY2025-H1First statedAnnual report
「As the relevant consenting shareholder partially sold its WCP shares on 29 August 2024, voting rights fell below a majority. If this situation continues, WCP is expected to be removed from the scope of consolidation and become an associate accounted for under the equity method. The impact on the company's consolidated results will be reviewed and announced once finalised.」
The partial sale of WCP shares by the consenting shareholder caused voting rights to fall below the majority threshold that had supported continued consolidation. WCP's removal from consolidation has not yet been finalised, but the company indicated for the first time that WCP could become an equity-method associate if the situation continues, along with the potential impact on consolidated results.