JTEKT (TYO:6473) expects to record a 5 billion yen loss as other expenses in its consolidated financial results for the fiscal year ending March 31, 2027, following the signing of a definitive agreement to transfer its European OEM automotive business.
The transaction, which includes all shares of seven consolidated subsidiaries, was agreed with LEO III-VV25-B SAS, a company advised by Germany-based DUBAG Investment Advisory, and is set to be completed by the end of August, subject to regulatory approvals.
All shares and equity of the target companies will be transferred at a memorandum value, reducing JTEKT's investment ratio to 0%, according to a Tokyo bourse filing.
The expected loss has already been incorporated into the company's consolidated financial forecasts released on April 28.