The entire amount is expected to be financed in GENDA in Japanese yen, and the borrowing will be executed at the time of closing. We aim to maximize shareholder value through M&A by borrowing to take advantage of the low interest rate environment in Japan.

In terms of foreign exchange risk, we will (not lend but) conduct capital injection from GENDA (through GiGO) to Kiddleton for the consideration to be paid to NEN. Thus, the impact of foreign exchange gains or losses will only incur within our balance sheet (net assets foreign currency translation adjustments), which will not impact on the PL.

Furthermore, since our domestic operations generate ample cash flow in yen, the repayment of the loan will not depend on NEN’s dollar-denominated cash flow, so the foreign exchange risk is practically negligible.