Nippon Densetsu Kogyo to spin off telecoms business into new subsidiary

Nippon Densetsu Kogyo Co., Ltd. announced a simplified incorporation-type company split to establish a new subsidiary, JCroc, effective October 1, 2025. This strategic move aims to foster more agile and flexible business operations for its telecommunications segment. The new company will be 100% owned by Nippon Densetsu Kogyo and will receive 4,000 shares of common stock in the split.

The newly formed JCroc will inherit all assets, liabilities, and contractual rights and obligations related to the telecommunications business as of September 8, 2025. As of March 31, 2025, the telecommunications business had liquid assets of 200m yen. The company reported that the new entity's assets are expected to exceed its liabilities post-split, with no anticipated issues regarding debt fulfillment.

Nippon Densetsu Kogyo's capital will not change as a result of the split. The company's financial overview for the fiscal year ended March 31, 2025, showed consolidated net assets of 209,649m yen and total assets of 296,388m yen, with sales of 216,922m yen and ordinary profit of 19,400m yen. The impact of this company split on Nippon Densetsu Kogyo's overall performance is expected to be minor.