In September, Hikari Tsushin announced that it would acquire Leopalace21 through a tender offer. The offer price is ¥1,000 per share, the maximum purchase price is approximately ¥267.6 billion, and the tender offer period runs through 30 October. The company is expected to seek synergies by leveraging Leopalace's tenant base and sales network.
Hikari Tsushin will purchase Leopalace21 shares in a tender offer to take the company private. The offer price is ¥1,000 per share, the maximum purchase price is approximately ¥267.6 billion, and the tender offer period is scheduled to run through 30 October. The plan is reportedly to use Leopalace's approximately 540,000 rental housing units to encourage tenants to sign up for electricity, gas and internet services at the same time.
Hikari Tsushin's business is centered on agency operations and the sale of products planned and developed in-house. Referral sales account for only approximately 13.4% of revenue, with the remainder coming from the company's own services. Supported by a sales network built on its sales capabilities and a recurring-transaction business model, the operating margin for the fiscal year ending March 2026 remains high at approximately 15.9%.
The rationale for acquiring Leopalace21 includes using its nationwide tenant base to consolidate contract processing and rapidly promote new contracts for energy, telecommunications and internet lines. Following the acquisition, Hikari Tsushin is scheduled to hold 34% of the voting rights, with the two other funds holding 33% each.
The company with the largest workforce in the Hikari Tsushin Group is Premium Water, with 467 employees, an average age of 34.6 years, average length of service of 6.3 years and average annual salary of ¥5,310,440. Hikari Tsushin itself has 3 employees, however, and there is a gap between the group's overall salary levels and the standalone company's actual structure.