Trial (TYO:141A) has approved an absorption-type company split and share transfer to liquidate and monetize part of Seiyu's real estate to raise 17 billion yen.
The move aims to ease the Trial's debt burden, which ballooned to 394.6 billion yen from 38.5 billion yen, and free up cash flow for future growth investments, according to a Tokyo bourse filing on Friday.
Under the plan effective Nov. 1, ST Retail will succeed to Seiyu's store operations (excluding real estate leasing and management) and accelerate the development of "TRIAL SEIYU" stores, while Seiyu will retain the real estate business.
On Dec. 1, Trial Company will transfer all Seiyu shares to Unicorn GK, with Seiyu subsequently merging into the buyer, though the transfer price remains undisclosed at the counterparty's request.
Following the split, ST Retail will be renamed Seiyu Co., and the original Seiyu will become Unicorn Co.