Tokushu Tokai Paper to absorb subsidiary TT Trading for efficiency

Tokushu Tokai Paper Co., Ltd. announced on September 11, 2025, that its Board of Directors decided to merge with its wholly owned subsidiary, TT Trading Co., Ltd., effective April 1, 2026. Tokushu Tokai Paper will be the surviving company, while TT Trading will be dissolved. This move aims to consolidate management resources, enhance organizational efficiency, and further expand the company's specialty functional paper business. TT Trading’s specialty functional paper trading functions will be absorbed by Tokushu Tokai Paper’s Special Materials Business Division.

This merger is categorized as a simple absorption-type merger for Tokushu Tokai Paper and a short-form merger for TT Trading under Japanese company law, thus not requiring shareholder approval. As TT Trading is a wholly owned subsidiary, no new shares will be issued, nor will any cash or other assets be allocated.

For the fiscal year ended March 31, 2025, Tokushu Tokai Paper reported consolidated net assets of JPY 85,834m and total assets of JPY 139,436m, with sales of JPY 94,800m. TT Trading, for the same period, reported net assets of JPY 1,569m, total assets of JPY 5,660m, and sales of JPY 11,474m. The merger is expected to have a minor impact on Tokushu Tokai Paper’s consolidated financial performance.