Maxvalu Tokai Co.,Ltd. (TSE:8198) signed a basic agreement to acquire 32.87% stake in Maxvalu Chubu Co., Ltd. (NSE:8171) on October 10, 2018. Maxvalu Tokai Co.,Ltd entered into a merger agreement to acquire Maxvalu Chubu on April 10, 2019. An agreement is expected to be concluded in mid-April 2019.

Prior to the transaction, A split agreement was also signed on April 10, 2019. As per the split agreement, Aeon Big Co., Ltd will issue a cash of ¥ 6.2 billion to Maxvalu TOKAI. Aeon Co., Ltd. (TSE:8267), parent of Maxvalu Tokai Co.,Ltd. holds 67.13% stake in Maxvalu Chubu Co., Ltd. After the transaction, Maxvalu Tokai Co.,Ltd. will be the surviving entity and Maxvalu Chubu Co., Ltd. will be dissolved.

A meeting of shareholders of Maxvalu Chubu will be held on May 16, 2019 and a meeting of shareholders of Maxvalu Tokai will be held on May 24, 2019 to approve the transaction. The Board of Directors of Maxvalu Tokai Co.,Ltd. and Maxvalu Chubu Co., Ltd. passed a resolution for the transaction on October 10, 2018. The Board of Directors of Maxvalu Tokai Co.,Ltd resolve the split on April 10, 2019.

As of May 16, 2019, shareholders of Maxvalu Tokai approved the transaction. The transaction is expected to be completed on September 1, 2019. Maxvalu Chubu will be delisted on August 29, 2019.