Maruichi Steel Tube to acquire Maruichi Kohan as wholly owned subsidiary

Maruichi Steel Tube, listed on the Tokyo Stock Exchange Prime Market, has resolved to make Maruichi Kohan, its consolidated subsidiary, a wholly owned subsidiary through a simplified share exchange, effective October 1, 2025. This move, approved by Maruichi Steel Tube's board of directors, aims to streamline decision-making and stabilize management for enhanced group value as part of its "MARUICHI 2030 VISION."

Under the agreement, Maruichi Steel Tube will allocate 157.0 common shares for each common share of Maruichi Kohan. This calculation assumes a 3-for-1 share split of Maruichi Steel Tube's common stock, also effective October 1, 2025. The total number of shares to be allocated is approximately 8,061,950, utilizing Maruichi Steel Tube's treasury shares rather than issuing new ones.

The share exchange ratio was determined based on an assessment by independent third-party C.P.A Matsui Office. Maruichi Steel Tube's shares were valued using the market price average method, while Maruichi Kohan's shares were valued using the adjusted net asset method. Maruichi Steel Tube anticipates the impact on its consolidated financial results to be minimal.