Scala, Inc. agreed to acquire Nihon Pet Small-amount Short-term insurance Company from Nenarigaki Mitsuyama, Dream Capital Co., Ltd, Yoshio Kawamoto, Japan Reliance Satellite Co., Ltd and Shinji Tsutsumi for approximately ¥400 million.

Scala, Inc. (TSE:4845) agreed to acquire Nihon Pet Small-amount Short-term insurance Company from Nenarigaki Mitsuyama, Dream Capital Co., Ltd, Yoshio Kawamoto, Japan Reliance Satellite Co., Ltd and Shinji Tsutsumi for approximately ¥400 million on February 14, 2022. Under the terms, Scala, Inc. will acquire 18,500 shares of Nihon Pet Small-amount representing 100% stake. As per disclosure of March 28, 2022, Nihon Pet Small-amount Short-term insurance Company will increase its capital on March 28, 2022 in order to satisfy the solvency margin ratio, so the net assets of Japan Pet Small Amount Short Term Insurance Company, which was assumed when determining the share acquisition price, Since there will be a discrepancy between the amount and the actual net asset value, the capital increase is reflected in the stock acquisition price.

Scala, Inc. will now acquire approximately 0.02 million shares for ¥429 million. As of now Nenarigaki Mitsuyama holds 87% stake, Dream Capital Co., Ltd 6.5%, Yoshio Kawamoto 4.2%, Japan Reliance Satellite Co., Ltd 2.2% and Shinji Tsutsumi 0.1% stake in Nihon Pet Small-amount. For the year ended March 31, 2021, Nihon Pet Small-amount reported Total assets of ¥676 million, net assets of ¥93 million and net income of ¥40 million.

The transaction is subject to approval from relevant authorities.