SYLA Solar to absorb renewable data center company in move to leverage business strength

Rhea-AI Summary

SYLA Solar has announced the absorption and merger with SYLA Biotech , effective July 1, 2024. This move aims to enhance SYLA Solar's business strength by integrating renewable energy and data center operations. SYLA Solar is a subsidiary of SYLA Technologies, which operates Rimawari-kun, Japan's largest membership real estate crowdfunding platform. The merger is expected to leverage SYLA Solar's capabilities in the renewable energy sector and provide synergies with SYLA Biotech's technologies.

Positive

• SYLA Solar enhanced its business strength through the merger with SYLA Biotech, potentially increasing its market share in renewable energy.
• The integration of SYLA Biotech's data center capabilities may offer new revenue streams and operational efficiencies for SYLA Solar.

Negative

• The merger may involve significant integration costs and operational disruptions in the short term.
• There is a potential risk of dilution in focus and resources as SYLA Solar expands its business scope.

News Market Reaction

+1.60%

1 alert

+1.60% News Effect

On the day this news was published, SYT gained 1.60%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

TOKYO, July 01, 2024 (GLOBE NEWSWIRE) -- SYLA Solar Co., Ltd. (Head Office: Nagoya, Aichi; CEO: Takeshi Fuchiwaki; hereinafter “SYLA Solar”), a wholly owned subsidiary of SYLA Technologies Co., Ltd. (Head office: Shibuya-ku, Tokyo; CEO: Hiroyuki Sugimoto; NASDAQ “SYT”), operator of the largest membership real estate crowdfunding platform in Japan, Rimawari-kun, absorbed and merged with SYLA Biotech Corporation (Head office: Shibuya-ku, Tokyo; CEO: Makoto Ariki), effective on July 1^st, 2024.

About Absorption-Style Merger
SYLA Technologies is focusing on advancing its renewable energy business as a part of growth strategy to achieve its mid-term sales targets by the end of fiscal year 2026.

With strong subsidy support from the Ministry of Economy, Trade and Industry, the company's main thrust is the development of solar power sources, aiming to further grow its business and enhance corporate value.

SYLA Solar is engaged in the development of solar power generation, EPC (Engineering, Procurement, and Construction) services, and retail electricity sales, thereby supporting the overall renewable energy business of the group. SYLA Biotech sells and operates 100% renewable energy data centers, contributing to reducing environmental impact.

With this absorption merger on July 1^st , 2024, with SYLA Solar is the surviving company and SYLA Biotech is absorbed company. Since both companies are 100% subsidiaries of SYLA Technologies, this merger is executed as a non-monetary transaction without issuance of new shares.

Surviving Company
SYLA Solar Co., Ltd.
Head Office: Land Square Marunouchi 2F, 2-18-14 Marunouchi, Naka-ku, Nagoya, Aichi, JP
Representative Director: Takeshi Fuchiwaki
Establishment: August 2013
Capital: 46,000,000 yen

Extinct Company
SYLA Biotech Co., Ltd.
Head Office: Ebisu Prime Square Tower 7F, 1-1-39 Hiroo, Shibuya-ku, Tokyo, JP
Representative Director: Makoto Ariki
Establishment: April 2022
Capital: 5,000,000 yen

Contact for Inquiries about Leases
Management Company: SYLA Co., Ltd.
Tel: +81-3-4560-0653 (direct line 3)
E-mail: chintai@syla.jp

SYLA Technologies Company Contact
Takeshi Fuchiwaki
Director, Chief Growth Officer
irpr@syla.jp

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/91da7edc-0de7-455b-8f8b-7969f9df7d15

FAQ

What is the significance of SYLA Solar's merger with SYLA Biotech?

The merger aims to strengthen SYLA Solar's business by integrating renewable energy and data center operations, potentially increasing market share and operational efficiency.

When did SYLA Solar merge with SYLA Biotech?

The merger was effective on July 1, 2024.

How might the SYLA Solar and SYLA Biotech merger impact SYT stock?

The merger may positively impact SYT stock by enhancing SYLA Solar's market position and operational efficiencies, although there may be short-term integration costs.

What are the potential risks associated with SYLA Solar's merger?

Potential risks include significant integration costs, operational disruptions, and dilution of focus and resources.