Ktk Inc. (JASDAQ:3035) signed a share exchange contract to acquire Seiun Crown Co., Ltd. from a group of sellers for approximately ¥500 million in stock on August 2, 2012. Ktk will acquire 2.2 million shares of Seiun Crown in exchange of 1 Ktk share per Seiun Crown share. The sellers include Seiundo Co., Ltd., Tokyo Crown, K.K., Hokkaido Crown Co., Ltd., Shinkyusyu Crown Co., Ltd., Hideo Aoyama, Kazuyuki Kawashima, Masayuki Aoyama, Miyuki Aoyama, Tomohiro Aoyama, Tomoko Aoyama, Kayo Hashimoto and other stakeholders. Hideo Aoyama will sell 33.18% stake, Seiundo Co., Ltd will sell 20% stake, Kazuyuki Kawashima will sell 10.41% stake, Masayuki Aoyama will sell 8.27% stake, Tomohiro Aoyama will sell 7.27% stake, Miyuki Aoyama will sell 5.18% stake, Tomoko Aoyama will sell 4.82% stake, Kayo Hashimoto will sell 3.64% stake, Tokyo Crown Co., Ltd, Shinkyusyu Crown Co., Ltd and Hokkaido Crown Co., Ltd will each sell 1.82% stake. After completion of the transaction, the new entity will trade as KTK, Inc. and its head office will be based in Nagoya City. Hideo Aoyama will act as president of Ktk Inc. post acquisition.

Seiun Crown reported total assets of ¥3.59 billion, net assets of ¥480.8 million and net income of ¥1.14 million as of June 20, 2012. The Board of Directors of Ktk and Seiun Crown resolved the deal on August 2, 2012. The transaction is subject to approval of shareholders of Ktk and Seiun Crown at shareholders' meeting to be held on November 13, 2012. The transaction is expected to complete on December 21, 2012. Tokai Tokyo Financial Holdings, Inc. (TSE:8616) acted as financial advisor to Ktk.

Ktk Inc. (JASDAQ:3035) completed the acquisition of Seiun Crown Co., Ltd. from a group of sellers on December 21, 2012.