Usen-Next subsidiary U-POWER to acquire Kukoku Energy

Usen-Next Holdings (TSE:9418) announced that its consolidated subsidiary, U-POWER Co., Ltd., will acquire all shares of Kukoku Energy, Inc. from Enellink Holdings, Inc., making Kukoku Energy a second-tier subsidiary. This decision, approved by the board on April 18, 2025, aims to enhance U-POWER's sustainable electricity services based on renewable energy. U-POWER, which provides these services to both corporate and individual customers, seeks to accelerate its business growth by responding to the increasing demand for renewable energy and the evolving market. The acquisition, expected to close on May 1, 2025, will allow U-POWER to strengthen its organizational structure and offer more diverse and higher value-added electricity services. The acquisition cost is JPY 1, funded by U-POWER's own funds. The trade name of the Target Company is expected to change to "U-POWER GREEN MARKETING Co., Ltd.". While Kukoku Energy reported a net loss of JPY 121,759 thousand in the most recent fiscal year ending December 2024, Usen-Next anticipates a swift return to profitability through synergies with U-POWER.