FOOD & LIFE COMPANIES, a major conveyor-belt sushi operator, will sell 京樽 for approximately ¥3.7 billion. The company subscribed to an approximately ¥6.5 billion capital increase to cover 京樽's negative net worth, and the article reports the circumstances and background of the transfer to SRS Holdings.
FOOD & LIFE COMPANIES (F&LC) sold all shares of its subsidiary 京樽 to SRS Holdings (SRS Holdings). The transfer price was approximately ¥3.7 billion. To eliminate 京樽's negative net worth, F&LC subscribed to an approximately ¥6.48 billion private placement, repaid its liabilities and proceeded with the transfer.
京樽 had previously achieved a relisting after being listed on the First Section of the Tokyo Stock Exchange and undergoing corporate rehabilitation proceedings, but more recently it had accumulated approximately ¥10.72 billion in liabilities and fallen into a negative net worth of approximately ¥3 billion. F&LC restored its net assets through the capital increase and transferred the company to SRS Holdings.
Goodwill following the transfer is expected to be kept to approximately ¥100–200 million, and the acquisition is viewed as relatively favourable for SRS Holdings. F&LC, meanwhile, is believed to have pursued the sale to streamline its assets.
The background includes developments among businesses in other sectors, such as food supermarkets, in addition to conveyor-belt sushi, as well as advances in the use of digital technology. Attention is focused on SRS Holdings' future measures to improve earnings and its rebuilding plan.