Sala Corporation has agreed to transfer a majority stake in its motorcycle parts subsidiary, Shin-kyogiken, to Suzuki, establishing a joint management framework to drive operational efficiencies and growth.

Target Information

Sala Corporation (Ticker: 2734), a company engaged in urban gas and LP gas sales, has decided to transfer a controlling stake in its subsidiary, Shin-kyogiken, which manufactures motorcycle parts for Suzuki (Ticker: 7269). This transaction aims to establish a collaborative management arrangement between Sala Corporation and Suzuki, as the company assessed it would struggle to leverage synergies with its existing business operations. For the fiscal year ending November 2024, Shin-kyogiken reported a revenue of approximately 999 million yen, an operating profit of 11 million yen, and a negative net asset of 311 million yen.

The specific terms of the transaction remain undisclosed, but the transfer is slated for December 1, 2025. Under the arrangement, 51% of Shin-kyogiken's stake, currently held by Sala Energy, will be transferred to Snick, a subsidiary of Suzuki based in Iwata City, Shizuoka Prefecture.

Industry Overview

The motorcycle parts manufacturing industry in Japan is experiencing a dynamic transformation fueled by advancements in technology and rising demand for electric vehicles (EVs). Japanese manufacturers are at the forefront of innovation, striving to en