GENDA Group to commence tender offer to expand its karaoke business.~ Commencement of a Tender Offer to ONTSU Co., Ltd.~

GENDA Inc. (Headquarters: Minato-ku, Tokyo; Representative Director and Chairman of the Board: Nao Kataoka; Representative Director and President: Mai Shin; hereinafter “GENDA”) resolved at a meeting of its Board of Directors held today to acquire common shares of ONTSU Co., Ltd.(Headquarters: Kita-ku,Osaka City; Representative Director and President:Kunihiko Okamura; hereinafter “ONTSU”) through a tender offer as provided for in the Financial Instruments and Exchange Law.

■ For more information on the tender offer, please see this timely disclosure. 

The Group is an entertainment company that aims to build a global entertainment network and increase the “total amount of fun” distributed in the world in order to realise its Aspiration of “More fun for your days”. ONTSU rents and sells karaoke equipment and operates fitness facilities and hot yoga studios, with the business concept of ‘providing and proposing time and space for casual enjoyment’. The company’s mission is to propose the creation of a new culture in the fields of leisure and health, which are essential to daily life, and to develop its business with the aim of maximising customer satisfaction by responding quickly to changes in value in society.
Shin Corporation Co., Ltd. (Headquarters: Shinjuku-ku, Tokyo; Representative Director and President: Noriyuki Kawaguchi),which operates “Karaoke BanBan,” belongs to our group, and we believe that we can collaborate with ONTSU to enhance the user experience through karaoke device distribution, with an eye toward creating synergies.

Specific examples include.
(i) Promotion of the ONTSU Group’s introduction of equipment to Karaoke BanBan.
The Company will increase the number of karaoke machines handled by the ONTSU Group when installing new or upgraded karaoke machines at “Karaoke BanBan” operated by our group company, Shin Corporation Co., Ltd. , through the ONTSU Group.
(ii) Economies of scale in the night market.
By increasing the rental of new karaoke equipment from ONTSU to ‘Karaoke BanBan’, the number of used equipment that has completed its rental period can be increased. These can then be placed in the night market (mainly night-time establishments such as snack bars and clubs), where there is demand for used equipment, thereby promoting the replacement of equipment. By thus rejuvenating the equipment age of karaoke equipment, the trading conditions for karaoke equipment rental in the night market will be improved.
(iii) Network expansion and increase in the number of units handled due to roll-up M&A of peers.
In the karaoke market, which is in a mature business environment, we believe that business integration between karaoke equipment distribution companies is expected to accelerate in the future. In this market, the ONTSU Group aims to expand its sales area and maintenance network and increase the number of devices it handles by rolling up its karaoke equipment distribution companies.

GENDA will continue to pursue M&A as the mainstay of its growth strategy to realise its Aspiration of ‘More fun for your days’.

■ONTSU Co., Ltd. Profile
Company name: ONTSU Co., Ltd.
Representative Director and President :Kunihiko Okamura
Established: 1981 Aug.
Location: 8th floor, RISE 88 Building, 1-1-10 Honjo Higashi, Kita-ku, Osaka City, Osaka

■GENDA Company profile

「More fun for your days」
To realise this Aspiration, GENDA is an entertainment company that aims to build a global entertainment network and increase the ‘total amount of fun’ distributed in the world. GENDA operates a wide range of businesses in entertainment, including Amusement, Karaoke, Character Merchandising, Food & Beverage, Contents & Promotion (movies, interactive contents, etc.). It operates approximately 700 amusement arcades such as GiGO and the karaoke chain BanBan in Japan and abroad, as well as approximately 1,200 mini-locations (non-staffed gaming corners). It operates in Japan, North America, mainland China, Taiwan, the UK and the Middle East.

Company name: GENDA Inc.
Representative Director and Chairman of the Board Nao Kataoka, Representative Director and President Mai Shin
Established: 5 May 2018.
Location: 17F, Tokyo Shiodome Building, 1-9-1 Higashi-Shinbashi, Minato-ku, Tokyo
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