Tokyo Stock Exchange listed property developer, Prospect Co. Ltd. has completed its acquisition of Keynote Co. Ltd., the real estate development subsidiary of entertainment conglomerate, Keyholder Inc. (JASDAQ:4712).
The companies signed a share exchange agreement on 12 August, whereby Prospect issued 26,860 new shares for every one share of Keynote. The deal was valued at JPY2 billion and was completed on 3 September 2020. Keynote will now become a wholly owned subsidiary of Prospect.
Keyholder Inc. has a range of subsidiary business involved in entertainment talent management and video production. Keynote Co. Ltd., as a property design and development company, was a slightly strange bedfellow in this group and the disposal of the business to Prospect appears in-line with the desire of the parent company to focus solely on the entertainment sector.
Prospect Co. Ltd. is an investment holding company with subsidiaries Gro-bel Mansion and Sasaki House involved respectively in the development and sales of condominiums in Tokyo and the construction of single-family houses in Yamagata Prefecture in Northern Japan.
The company expects the Keynote acquisition to both expand their business opportunities into the Kansai region, around Osaka, as well as adding Keynote’s real estate consultation services to the business. With many companies reassessing their real estate strategies in light of the COVID-19 crisis, Prospect expect these consultation services to be in demand.