May 22, 2020
PRESS RELEASE
Company name: MIRAIT Holdings Corporation
Representative: Masatoshi Suzuki, President and CEO(TSE 1st Section Code No. 1417)
Inquiries: Ryuichi Hara, Director and General Manager of Strategy(Phone: +81-3-6807-3119)

Notice on Acquisition of Shares of Shanghai Changling Communication Equipment Co., Ltd(Conversion into Subsidiary)
In a meeting of the Board of Directors held today, MIRAIT Holdings Corporation (“the Company”) resolvedto acquire 50.1% of the issued shares of Shanghai Changling Communication Equipment Co., Ltd through theCompany’s consolidated subsidiary Lantrovision (S) Ltd (head office: Ayer Rajah Crescent Singapore 139939,
Managing Director CHAN THYE YUAN, “Lantrovision”).

1. Purpose of the acquisition
The MIRAIT Group is expanding the scope of its business into the ICT solution business and the environmental &social innovation business, in addition to expanding globally with the aim of becoming a Comprehensive Engineering& Service Company based on technology for creating information and communications infrastructure.
Lantrovision, which is at the core of the Group’s global business, has conducted business in 13 countries and 28 cities
throughout Asia, including Singapore and China, centered on LAN cabling design, implementation, maintenance andconsulting operations.
At present, countries are competing to establish infrastructure using the next generation standard of 5G, and thegovernment is leading a strong push for its establishment in China. Against this backdrop, in order to promote andimprove the efficiency of capital expenditures, telecommunications carriers are sharing of telecommunications towersthat account for much of their capex. Changling, whose shares were acquired by Lantrovision to make it a subsidiary,

already has abundant accomplishments in the construction of telecommunications towers and sharing services
mainly in Shanghai, China, and is expected to achieve stable business revenue and expansion of business bycapturing this 5G-related demand.
The Group aims to expand the medium- to long-term business domains and revenue in its global business by
establishing a system for communication cabling in data centers, etc. that is Lantrovision’s principal business, inaddition to the provision of services for the establishment of infrastructure for telecommunications carriers.
2. Overview of subsidiary acquiring the shares (Lantrovision (S) Ltd)
(1)
(2)
(3)

Name
Address
Name and title ofrepresentative

Lantrovision (S) Ltd
8 Ayer Rajah Crescent, Singapore 139939
CHAN THYE YUAN, Managing Director(4)

Details of business

Design, implementation, maintenance, consulting and sale of equipment forLAN cabling,(5)

Paid-in capital

SGD 59 million (JPY 4,720 million)

3. Overview of the subsidiary being transferred (Shanghai Changling Communication Equipment Co., Ltd)
(1)
Name
Shanghai Changling Communication Equipment Co., Ltd(2)
Address
No. 1175 Tongpu Road, Putuo District, Shanghai
Name and title of(3)Mr. Jiang Yabin, President and General Manager
representative(4)
Details of businessTelecommunications tower construction and sharing services(5)
Paid-in capital
RMB 30 million (JPY 453 million)(6)
Date establishedMarch 27, 2006
Major shareholders andWe will refrain from disclosure due to the conclusion of confidentiality(7)
shareholding ratio
agreements with the existing shareholders
There are no notable capital relationships between theCompany and the Acquired Company. Furthermore, there
Capitalare no noteworthy capital relationships between therelationships
personnel or affiliates of the Company and the personnel oraffiliates of the Acquired Company.
There are no notable personal relationships between theRelationships between
Company and the Acquired Company. Furthermore, there
the Listed Company andPersonal(8)are no noteworthy personal relationships between thethe Acquired Company
relationships
personnel or affiliates of the Company and the personnel oraffiliates of the Acquired Company.
There are no notable business relationships between theCompany and the Acquired Company. Furthermore, thereBusiness
are no business noteworthy relationships between therelationships
personnel or affiliates of the Company and the personnel oraffiliates of the Acquired Company.
(9)Management performance of the Acquired Company over the past three years(Units: JPY million)
Fiscal year ended
Fiscal year ended
Fiscal year ended
Fiscal year
December 31, 2017
December 31, 2018
December 31, 2019
Net assets
45
2- 37
Total assets
278
17
13
Net sales
332
4Operating income
106
- 42
- 40
Net income
107
- 42
- 40

The Acquired Company changed its business format from specializing in tower construction to a towerconstruction and sharing business.
For this reason, there was no revenue from sharing in fiscal 2019 and liabilities exceeded assets, but it recorded
revenue from sharing in fiscal 2020 after being designated as a certified business operator by a major Chinese
telecommunications carrier.
4. Overview of the other parties to the acquisition of shares
We will refrain from disclosure because Lantrovision has an obligation of confidentiality to the relevant shareholders.
5. Number of shares acquired, acquisition price and state of shares held before and after acquisition(1)
Stake held before change Ownership ratio: 17.3%(2)
Acquired stakeAcquisition ratio: 32.8%
The acquisition price is not public, but it was determined based on share value(3)
Acquisition pricecalculation report, etc. obtained from a third-party organization to ensure
fairness and appropriateness.
(4)
Stake held after change
Ownership ratio: 50.1%
6. Schedule(1)(2)

Meeting of the Board ofDirectors
Effective date

May 22, 2020
July 1, 2020 (scheduled)7. Future outlook
The impact of acquisition on the Company’s consolidated results will be minor.

End* The exchange rate used for the Chinese yuan and Japanese yen in this document is RMB1:JPY15.10.