Starts Corporation, Inc. (JASDAQ:8850) entered into share exchange contract to acquire remaining 41.61% stake in Starts Securities Co., Ltd. for ¥1.1 billion in stock on January 9, 2014. Starts Corporation, Inc. will issue 152 shares for each share of Starts Securities Co., Ltd. In related transactions, Starts Corporation, Inc. will acquire remaining shares in Starts Amenity Co., Ltd. and Weave Corporation. Starts Corporation, Inc. will operate Starts Securities Co., Ltd. as its wholly owned subsidiary. Starts Securities reported sales of ¥1.5 billion, operating profit of ¥368 million and net income of ¥205 million for year ended March 2013.

Board of Directors of Starts Corporation and Starts Securities Co., Ltd. made a resolution in favor of the transaction on January 9, 2014. Starts Corporation, Inc. plans to carry out the share exchange without obtaining approval from our shareholders, following the simple share exchange process in accordance with the regulations of Article 796 Paragraph 3 of Japan's Companies Act. The expected date for extraordinary shareholders meeting of Starts Securities Co., Ltd. is February 18, 2014. The transaction is expected to close on April 1, 2014.