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Notification of Posting Gain on Sales of Shares of Subsidiaries and Associates (Extraordinary Gains) in the Company's Non-consolidated Financial Results
Nov 28, 2017
Recruit Holdings Co., Ltd. (the "Company") announces today that, as part of the Group Reorganization announced in the "Notification of the Group Reorganization and Dividends from Consolidated Subsidiaries" dated September 27, 2017, the Company will sell all the shares in some of its wholly-owned subsidiaries including Recruit Staffing Co., Ltd. to STAFF SERVICE HOLDINGS CO., LTD, which is also a wholly-owned subsidiary of the Company. Accordingly, the Company will post a gain on sales of shares of subsidiaries and associates (extraordinary gains) in the Company's non-consolidated financial results for the year ending March 31, 2018, as follows.
1. Overview of Gain on Sales of Shares of the Company's Subsidiaries and Associates
As stated in the "Notification of the Group Reorganization and Dividends from Consolidated Subsidiaries" dated September 27, 2017, the Company resolved to conduct the Group Reorganization, with the three Strategic Business Units at the core. As part of this, the Company will sell all the shares it holds in some of its wholly-owned subsidiaries including Recruit Staffing Co., Ltd. to STAFF SERVICE HOLDINGS CO., LTD., which is also a wholly-owned subsidiary of the Company, and record the gain on sales of shares of subsidiaries and associates in the total amount of ¥58,168 million in extraordinary gains in the non-consolidated financial results for the year ending March 31, 2018.
Even after the abovementioned sale of shares, Recruit Staffing Co., Ltd. and STAFF SERVICE CO., LTD. will continue their current business operations, with no changes to their management and business operations, service brands, etc.
(Overview of the subsidiary that will become a sub-subsidiary)
| (1) Name | Recruit Staffing Co., Ltd. | |
|---|---|---|
| (2) Location | 8-4-17, Ginza, Chuo-ku, Tokyo | |
| (3) Title and name of the representative | Mio Kashiwamura, President and Representative Director | |
| (4) Description of business | Staffing business | |
| (5) Capital | ¥939 million | |
| (6) Foundation | June 22, 1987 | |
| (7) Major shareholder and shareholding ratio | Recruit Holdings Co., Ltd. | 100.0% |
| (8) Schedule of the transfer | November 28, 2017 | |
*As this is an intra-group transfer of a subsidiary, the following items are omitted from the above description: "Relationship between the Company and Recruit Staffing Co., Ltd.," "Financial position and financial results for the last three years," "Number and amount of shares to be transferred," "Number of shares held before and after the transfer, and ratio of voting rights held."
(Overview of the recipient of the transfer of shares)
| (1) Name | STAFF SERVICE HOLDINGS CO., LTD. | |
|---|---|---|
| (2) Location | 85, Kanda Neribei-cho, Chiyoda-ku, Tokyo | |
| (3) Title and name of the representative | Hideaki Kito, President and Representative Director | |
| (4) Description of business | Staffing business | |
| (5) Capital | ¥500 million | |
| (6) Foundation | February 28, 1990 | |
| (7) Major shareholder and shareholding ratio | Recruit Holdings Co., Ltd. | 100.0% |
| (8) Schedule of the transfer | November 28, 2017 | |
*As this is an intra-group transfer of a subsidiary, the following items are omitted from the above description: "Relationship between the Company and STAFF SERVICE HOLDINGS CO., LTD.," "Net assets and total assets for the immediately preceding fiscal year," "Number and amount of shares acquired," "Number of shares held before and after the acquisition, and ratio of voting rights held."
2. Future Outlook
Although possible impacts of this posting on the Company's consolidated financial results for the fiscal year ending March 31, 2018 are currently being examined, no negative impact is expected on the profit for the period. If it becomes necessary to revise the consolidated financial results forecast, the details of the revisions will be disclosed immediately.
