Tobu Railway to merge with three wholly owned subsidiaries

Tobu Railway Co., Ltd. will absorb its wholly owned subsidiaries, Tobu Intertech Co., Ltd., Tobu Engineering Co., Ltd., and Tobu Station Service Co., Ltd., through an absorption-type merger on April 1, 2026. This decision, approved by Tobu Railway's board on December 24, 2025, aims to secure competitive talent and establish an efficient, sustainable railway operation structure. The merger is classified as a simplified merger for Tobu Railway and a summary merger for the subsidiaries, negating the need for shareholder approvals.

Tobu Railway, with capital of JPY 102,135 million, will be the surviving entity, and the three subsidiaries will be dissolved. As Tobu Railway owns 100% of each subsidiary's issued shares, no new shares or cash will be exchanged. The merger is expected to have an insignificant impact on consolidated financial results.

As of March 31, 2025, Tobu Railway reported consolidated net assets of JPY 560,753 million. The disappearing companies reported non-consolidated net assets of JPY 528 million for Tobu Intertech, JPY 613 million for Tobu Engineering, and JPY 386 million for Tobu Station Service for the fiscal year ended March 31, 2025.