Tokyo Century to absorb wholly owned SDL subsidiary

Tokyo Century Corporation's board of directors approved the absorption-type merger of its wholly owned subsidiary, SDL Co., Ltd., effective April 1, 2026. Tokyo Century will be the surviving company, and SDL will be dissolved. This merger aims to integrate overlapping administrative departments and effectively utilize management resources, thereby improving the overall operational efficiency of the Tokyo Century Group.

As SDL is a wholly owned subsidiary, the merger will not involve the issuance of new shares or the delivery of money. The merger qualifies as a simplified absorption-type merger for Tokyo Century and a short-form merger for SDL, eliminating the need for shareholder meetings to approve the merger agreement.

For the fiscal year ended March 31, 2025, SDL reported total assets of JPY 5,509,516 thousand, with net assets of JPY 689,061 thousand. Revenue for the period was JPY 784,518 thousand, resulting in a net income of JPY 80,118 thousand attributable to parent company shareholders. Tokyo Century reported consolidated total assets of JPY 6,862,861 million and net assets of JPY 1,176,889 million for the same period.