Odawara Engineering Co., Ltd. (JASDAQ:6149) signed a contract to acquire remaining 7.77% stake in Royal Electric Co.,Ltd. (JASDAQ:6593) for approximately ¥330 million on February 10, 2016. Odawara Engineering and Royal Electric made a resolution on February 10, 2016 to conduct a share exchange. Allocation for the share exchange will be based on 1 Odawara Engineering shares and 0.60 Royal Electric shares.

544,725 Odawara Engineering common shares will be issued for the exchange. Post-closing Royal Electric will become wholly owned subsidiary of Odawara Engineering. Share exchange contract conclusion date is February 10, 2016.

Royal Electric's shareholders' meeting date on the approval of the share exchange contract is March 25, 2016. Odawara Engineering plans to conduct this share exchange without getting approval under its shareholders' meeting. Final trading date of Royal Electric will be May 26, 2016.

Delisting date for Royal Electric will be May 27, 2016 and share exchange effective date will be June 1, 2016. Yamada & Partners Consulting Co., Ltd acted as a third party evaluator for Odawara Engineering. TMI Associates acted as legal advisor for Odawara Engineering.

Hongo Tsuji Business Consulting acted as a third party evaluator for Royal Electric. Wadakura Gate Law Office acted as legal advisor for Royal Electric.