Notice Regarding the Results of Tender Offer of Shares of SUNNY SIDE UP GROUP Inc.

Akatsuki Inc. has successfully concluded a tender offer to acquire SUNNY SIDE UP GROUP Inc., marking a significant step in the management integration of the two companies. The tender offer, which ran from May 14, 2026, to June 24, 2026, resulted in Akatsuki acquiring 9,355,136 common shares and 1,061 units of share acquisition rights. This acquisition represents a 63.42% ownership stake in the target company, effectively making SUNNY SIDE UP GROUP a consolidated and specified subsidiary of Akatsuki as of July 1, 2026.

The tender offer was executed at a price of 1,320 yen per common share and 65,900 yen per unit of share acquisition rights, resulting in a total acquisition cost of approximately 12,419 million yen. The transaction met the minimum threshold of 5,551,400 shares required for the offer to proceed. Following this acquisition, Akatsuki plans to initiate a squeeze-out process to make SUNNY SIDE UP GROUP a wholly-owned subsidiary, which will ultimately lead to the delisting of the target company from the Tokyo Stock Exchange Standard Market.

This strategic move integrates the operations of the two entities, though Akatsuki notes that the specific financial impact on its consolidated results remains under review. The target company, headquartered in Tokyo, has shown consistent financial performance over the last three fiscal years, with net sales reaching 19,587 million yen and an operating profit of 1,597 million yen for the fiscal year ended June 2025. The transition is scheduled to be finalized with the commencement of settlement on July 1, 2026.