Shinko Trading Incorporates Shimizu Syntec as a Consolidated Subsidiary

Shinko Trading Co., Ltd., based in Shinagawa, Tokyo, has entered into a stock transfer agreement with NEC Corporation and Shimizu Syntec. The acquisition positions Shinko Trading to enhance its value in the changing landscape of the electronics industry by integrating Shimizu Syntec, a company known for its robust sales infrastructure and extensive expertise in system solutions.

Strategic Rationale Behind the Acquisition

Shinko Trading's strategic direction is focused on elevating its value through a diverse range of electronic products and services. As part of its management strategy, the company has identified area strategies, growth investments aimed at new business domains, and mergers and acquisitions (M&A) as key components for expansion. Shimizu Syntec serves as a strong sales partner for NEC in the Hokuriku region, contributing valuable know-how from manufacturing support enriched with IT and digital transformation (DX) technologies. This acquisition is seen not only as a means of fulfilling Shinko’s strategic ambitions but also as a pathway for Shimizu Syntec to broaden its market reach.

With these synergies in play, Shinko Trading anticipates a significant increase in profit strength, an enhanced presence in the industry, and an improvement in corporate value.

Overview of Shimizu Syntec

- Company Name: Shimizu Syntec Co., Ltd.
- Location: 5-36 Tamagawa-machi, Kanazawa, Ishikawa Prefecture
- President: Tatsuhiro Matsuo
- Business Area: Wholesale of electronic devices and electrical installation
- Capital: 900 million yen
- Established: September 25, 1940
- Major Shareholder: 100% owned by NEC Corporation

Performance Metrics of Shimizu Syntec

The financial results of Shimizu Syntec illustrate a solid growth trajectory up to 2025:

- FY 2023:

- Net Assets: 3,252 million yen
- Total Assets: 6,845 million yen
- Revenue: 9,269 million yen
- Operating Profit: 203 million yen
- Net Profit: 156 million yen

- FY 2024:

- Net Assets: 3,489 million yen
- Total Assets: 6,897 million yen
- Revenue: 9,210 million yen
- Operating Profit: 363 million yen
- Net Profit: 269 million yen

- FY 2025:

- Projected Net Assets: 3,772 million yen
- Projected Total Assets: 8,307 million yen
- Projected Revenue: 9,907 million yen
- Projected Operating Profit: 579 million yen
- Projected Net Profit: 393 million yen

These figures exemplify Shimizu Syntec's stability and growth potential moving forward.

Share Acquisition Details

The specifics of the stock acquisition are as follows:

- Ownership before Acquisition: 0 shares (0% voting rights)
- Shares Acquired: 1,800,000 shares (1,800,000 voting rights)
- Purchase Price: 5,182 million yen
- Post-Acquisition Ownership: 1,800,000 shares (100% voting rights)

Timeline of the Acquisition

- Board Resolution Date: May 30, 2025
- Contract Execution Date: May 30, 2025
- Share Transfer Execution Date: Scheduled for June 30, 2025

Additional Information

Further updates regarding this transaction will be made available on Shinko Trading's website.

In conclusion, this acquisition marks a significant step for Shinko Trading towards realizing its growth objectives and enhancing its competitive stance in the electronics industry.