World to acquire Right On, boosting fashion industry consolidation

World Co., Ltd. and Right On Co., Ltd. have executed a share exchange agreement, effective March 1, 2026, to make Right On a wholly-owned subsidiary of World. This move is part of World's strategy to accelerate Right On's business growth and enhance the overall World Group's management efficiency and competitiveness. Right On shares are expected to be delisted from the Tokyo Stock Exchange Standard Market on February 26, 2026.

The share exchange ratio will be 0.2 shares of World common stock for every one Right On share, based on a World stock split of 1:2 to be implemented by March 1, 2026. World will also extend a loan of JPY 1 bn to Right On to repay debt and convert JPY 500 million in borrowing from W&DiD into a loan from World, solidifying Right On as a consolidated subsidiary.

Right On faced challenges, reporting a net loss of JPY 449 million for the fiscal year ended August 2025. This acquisition aims to leverage World's resources for structural reforms and growth. World's financial forecasts project net sales of JPY 300 bn and net profit attributable to parent company of JPY 12 bn for the fiscal year ending February 2026.