Worth reading
45Recurring
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
50
US$ millions (maximum planned capital)Wording
Conditional
How definitive the wording is.This transaction
Establishment of a special-purpose company (SPC)Disclosing companyAvex Inc.
The voting-rights ratio is the share of the votes exercisable at a shareholders’ meeting that will be held after this transaction.The percentage before the change is not stated in this document.
TimelineThe spacing between the points is proportional to the actual number of days.
Target company
Management and operation of music-related rights, Management and operation of music-related rights
Location Delaware, United States, Delaware, United StatesShare capital US$6 million (planned), US$6 million (planned)Date of incorporation March 2026 (予定), March 2026 (予定)
Consideration and expenses
Funding arrangementsThe entity acquiring the music catalogs is expected to borrow the acquisition funds through non-recourse loans from local financial institutions with extensive expertise in the music catalog business.
Impact on Business Performance
The impact of this investment on the Company's consolidated results for the fiscal year ending March 2026 will be minor.
Procedures and assumptions
Management structure after acquisitionThe representatives of Avex Catalog Fund 1 LLC and Avex Song Fund 1 LLC will be CEO Brandon Silverstein. Treatment of employees: not disclosed
| Item | Details |
|---|---|
| Transaction name | Establishment of a special-purpose company (SPC) |
| Name of the Subject Company | Avex Catalog Fund 1 LLC, Avex Song Fund 1 LLC |
| Business Description of the Subject Company | Management and operation of music-related rights, Management and operation of music-related rights |
| Location of the Subject Company | Delaware, United States, Delaware, United States |
| Capital Stock of the Subject Company | US$6 million (planned), US$6 million (planned) |
| Date of Establishment of the Subject Company | March 2026 (予定), March 2026 (予定) |
| Voting rights ownership percentage | After 100% (Avex Catalog Fund 1 LLC is wholly funded by Avex Music Group LLC, and Avex Song Fund 1 LLC is wholly funded by Avex Catalog Fund 1 LLC) (before not disclosed) |
| Funding arrangements | The entity acquiring the music catalogs is expected to borrow the acquisition funds through non-recourse loans from local financial institutions with extensive expertise in the music catalog business. |
| Impact on Business Performance | The impact of this investment on the Company's consolidated results for the fiscal year ending March 2026 will be minor. |
| Date of board resolution | 30 March 2026 |
| Execution Date / Effective Date | Date of establishment: March 2026 (planned) / Planned investment date: April 2026 (planned) |
| Management structure after acquisition | The representatives of Avex Catalog Fund 1 LLC and Avex Song Fund 1 LLC will be CEO Brandon Silverstein. Treatment of employees: not disclosed |
Items this document does not state (20)
Counterparty nameNet Sales of the Subject CompanyOperating Profit of the Subject CompanyNet Income of the Subject CompanyNet Assets of the Subject CompanyAcquisition priceExpenses other than the acquisition priceType of ConsiderationMerger ratio/share exchange ratioTender offer priceMinimum number of shares to be purchasedTender offer periodNumber of shares acquiredGoodwill amountAmount of extraordinary income (loss)Contract DateValuation methodologyIndependent 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.The purpose is to strengthen the management and operation of the music catalog business in the United States and overseas markets, acquire large catalogs using leverage, pursue opportunities for additional acquisitions and sales, and maximize financial returns and corporate value.
How to read this page
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