Avex to sell Virtual Avex stake in management buyout

Avex Inc. has resolved to transfer 3,645 common shares, representing 81% of its holdings in Virtual Avex Inc. (VAI), a consolidated subsidiary, to VAI director Keisuke Hara. This share transfer, executed through a management buyout (MBO), is set to complete by October 31, 2025. VAI, established in 2021 to capitalize on the virtual entertainment market, will no longer be a consolidated subsidiary of Avex, which will retain 19% ownership, or 855 shares.

The decision stems from an offer by Hara to pursue VAI's unique growth strategy, including new business ventures. Avex determined that an MBO was the optimal approach for VAI's future direction, aligning with the group's ongoing review of its business portfolio. The transfer price remains undisclosed due to confidentiality agreements.

Concurrently, there will be changes in VAI's leadership, effective October 1, 2025. Shinsuke Kato will retire as president, with Keisuke Hara assuming the role of president. Avex anticipates a minor impact on its consolidated operating results for the fiscal year ending March 31, 2026, with VAI expected to be deconsolidated in the third quarter of the same fiscal year.