Kirin Holdings Co. said Friday it will turn its winemaking subsidiary Mercian Corp. into a wholly owned unit on Dec. 1 by acquiring all shares through a stock swap.
After receiving approval at a meeting of the winemaker’s shareholders, Kirin plans to complete the swap at a ratio of 0.14 Kirin share for one Mercian share.
Kirin plans to issue 9,336,502 new shares through the stock swap, the holding company said.
Kirin is currently Mercian’s top shareholder, with a 50.12 percent stake.
With the equity exchange, Mercian will delist its stocks on the first section of the Tokyo Stock Exchange on Nov. 26.
The move follows Kirin’s announcement earlier this month that its group net profit in the first half of the current business year dropped 52.2 percent to ¥7.16 billion, partly because it incurred an extraordinary loss of ¥5.3 billion due to revisions of overstated accounting data at Mercian.
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