VLC Holdings Co., Ltd. (NSE:2467) signed a share transfer agreement to acquire MSS Corporation from Mach Systems Co., Ltd. for approximately ¥170 million on March 8, 2013. VLC Holdings Co., Ltd. is acquiring 200 shares of MSS, from which 76 shares of MSS Corporation representing 38% stake will be acquired for ¥50 million and 9,920 shares of VLC Holdings Co., Ltd. will be issued for every remaining share by issuing 80 share for every share of MSS Corporation. The transaction will be financed by subscription of shares to be issued by 3rd party allocation and change in principal shareholder, raised ¥66 million from the 3rd party allocation as payment on October 31, 2012.

This transaction aims to reach those objectives and of the capital to be raised by this 3rd party allocation, ¥50 million will be allocated to it. For the period ending September 2012, MSS Corporation reported total assets of ¥127 million, net assets of ¥101 million, sales of ¥418 million, operating profit of ¥16 million and net profit of ¥13 million. The transaction has been approved by Board of Directors of VLC Holdings Co., Ltd. and is subject to approval by shareholders of MSS Corporation on March 8, 2013.

The transaction for 38% stake is expected to close by March 11, 2013 and the remaining transaction is expected to close by March 31, 2013. Kobayashi Kenji CPA firm acted as valuer to VLC Holdings Co., Ltd.