Sala Corporation divests Shinkyo Giken stake for strategic alignment

Sala Corporation's board resolved on November 19, 2025, to transfer a portion of its shares in Shinkyo Giken Corporation to S-NIC Corporation, shifting it from a consolidated subsidiary to an equity-method affiliate. Shinkyo Giken, a manufacturer of two-wheeled vehicle components, was deemed to lack sufficient synergy with Sala Corporation's energy and solutions business.

The transaction involves Sala Energy Corporation, a Sala subsidiary, lending JPY 311 million to Shinkyo Giken and forgiving the same amount in debt to address Shinkyo Giken's negative equity as of November 30, 2024. Subsequently, a majority of shares will be transferred to S-NIC, establishing a joint venture between Suzuki and Sala Corporation. Of the 270,000 shares (100% voting rights) previously held, 137,700 shares will be transferred, leaving Sala Corporation with 132,300 shares (49% voting rights). The transfer price remains undisclosed due to confidentiality agreements.

This share transfer, set to conclude on December 1, 2025, is expected to result in Shinkyo Giken being deconsolidated from Sala Corporation's financial statements starting in the fiscal year ending November 2026. The impact on Sala Corporation's consolidated earnings for the fiscal year ending November 2025 is anticipated to be minor.