Daiwa House Industry Co., Ltd. (TSE:1925) entered into agreement to acquire 49.34% stake in Sumitomo Densetsu Co.,Ltd. (TSE:1949) from group of shareholders for approximately ¥170 billion on October 30, 2025. Under the terms, Daiwa House Industry Co., Ltd is offering ¥9760 in cash per shares. The acquisition is through tender offer. As per agreement, Sumitomo Electric Industries, Ltd. shall not tender any Sumitomo Densetsu Co.,Ltd. Shares held by Sumitomo Electric Industries, Ltd. Sumitomo Electric Industries, Ltd shall implement procedures to make Sumitomo Electric Industries, Ltd and Daiwa House Industry Co., Ltd. the only shareholders of Sumitomo Densetsu Co.,Ltd after the completion of the Tender Offer and transfer all Sumitomo Densetsu Co.,Ltd Shares held by Sumitomo Electric Industries, Ltd through a share buyback conducted by Sumitomo Densetsu Co.,Ltd. The tender offer will commence on October 31, 2025 and will end on December 15, 2025. The minimum number of shares to be purchased in the tender offer is 3.88 million shares. If the Offeror is unable to acquire all of the Sumitomo Densetsu's Shares excluding the treasury shares and the Shares Agreed Not to Tender through the Tender Offer, it will implement the Squeeze-Out Procedures against the Sumitomo Densetsu by way of the Share Consolidation. Following the successful completion of the Tender Offer, and the completion of the Transactions, Sumitomo Densetsu Co.,Ltd will no longer be a consolidated subsidiary of Sumitomo Electric Industries, Ltd and shares will be de-listed from Tokyo Stock Exchange.

The transaction is subject to approval of offer by the shareholders of Sumitomo Densetsu Co.,Ltd. The board of directors of Sumitomo Densetsu Co.,Ltd. has expressed an opinion in favor of the Tender Offer and to recommend that its shareholders tender their shares. The expected completion of the transaction is December 15, 2025. Mizuho Securities Co., Ltd. acted as financial advisor and fairness opinion provider to Daiwa House Industry Co., Ltd. Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. acted as financial advisor to Sumitomo Densetsu Co.,Ltd. Ken Miura, Shuhei Kubota and Yusuke Takamiya of Mori Hamada & Matsumoto LPC acted as legal advisor to Daiwa House Industry Co., Ltd.

Daiwa House Industry Co., Ltd. (TSE:1925) completed the acquisition of 49.34% stake in Sumitomo Densetsu Co.,Ltd. (TSE:1949) from group of shareholders on December 15, 2025. Upon the tender offer closing, 14.39 million shares were tendered and the minimum number of shares to be tendered was satisfied. As a result of this, the Squeeze-Out Procedure will be launched and the shares of Sumitomo Densetsu Co.,Ltd. will be delisted from the Tokyo Stock Exchange.