Notice regarding a change (transfer of shares) in a consolidated subsidiary
Tokyo, September 3, 2021 - NEC Corporation (NEC; TSE: 6701) today announced the transfer of all shares in NEC Energy Solutions, Inc. (NEC Energy Solutions), a consolidated subsidiary, to LG Energy Solution, Ltd. (LG Energy Solution). The stock transfer is scheduled to take place following completion of required regulatory clearances.
In recent years, along with the spread of renewable energy, the energy storage system market is expanding. However, market competition is also intensifying. Under these circumstances, in June 2020, NEC decided to suspend taking new orders for NEC Energy Solutions, an energy-related subsidiary that mainly provides power storage systems for electric power companies and businesses, and to continue only the execution and maintenance of contracted projects. Since then, NEC has explored the possibility of selling NEC Energy Solutions, while proceeding with the discontinuation of operations for the subsidiary. As a result, NEC decided to transfer the shares to LG Energy Solution.
The impact of this share transfer on NEC's consolidated financial results for the fiscal year ending March 31, 2022 will be minor.
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