Welcia to integrate with Tsuruha, become private under new alliance

Welcia Holdings (TSE:3141) will integrate with Tsuruha Holdings (HD) and become a private company, marking a significant shift in its corporate structure and strategy. The decision, formalized in a share exchange agreement executed on April 11, 2025, will see Welcia delist from the Tokyo Stock Exchange's Prime Market on November 27, 2025, with trading ceasing the day before. This integration is part of a broader capital and business alliance between Welcia, Tsuruha HD, and AEON Co., Ltd., aimed at creating Japan's largest drugstore chain and driving global growth. As part of the agreement, Tsuruha HD will consolidate operations and integrate business functions, potentially tapping into the ¥50.0BN-scale synergies expected within three years. Concurrent with these moves, Welcia announced an extraordinary loss of ¥13.1BN, reflecting a reassessment of noncurrent asset recoverability at some stores due to a deteriorating business environment. Looking ahead, Welcia projects JPY:685.1BN in net sales, JPY:20.5BN in operating income, and JPY:12.5BN in net income attributable to owners of parent for the first half of the 2026 fiscal year, with a year-end dividend of JPY:18.00 per share.