EJ Holdings Inc. (TSE: 2153) has agreed to sell its entire stake in a Kyoto-based tunnel-technology affiliate to Kajima Corporation, ending a relationship that traces back to EJ Holdings' predecessor, Eight Consultants. The listed engineering group will transfer 538,000 shares, representing 35.61% of the affiliate's voting rights before the deal, for ¥2.71bn. The two companies signed the transfer agreement on August 19, and the share transfer is due to close by the end of August 2026.
The affiliate, founded in January 2001 with ¥80mn in capital, builds measurement and construction-management systems for mountain and shield tunneling. It holds a high domestic market share specifically in mountain-tunnel measurement and management systems, built on more than 25 years of accumulated technical know-how and field experience. A separate shareholder table in the same filing lists EJ Holdings' equity stake at 33.63% as of June 30, 2026, alongside a manufacturing supplier holding 4.31% and two investment partnerships, Mizuho Growth Support No. 4 and Mitsubishi UFJ Capital No. 9, each holding 3.13%.
Kajima proposed making the affiliate a subsidiary so it can combine its own automated construction technology with the affiliate's tunnel-monitoring software and field expertise, aiming to turn the combination into services and products sold in Japan and abroad. EJ Holdings said it backed the plan as a route to the affiliate's "next stage" of growth.
The affiliate's most recent full year, ended June 2025, brought revenue of ¥3.49bn, ordinary income of ¥426.2mn and net income of ¥316.7mn, with earnings per share of ¥209.57. EJ Holdings said the effect on its own results for the year ending May 2027 is still being assessed and will be disclosed if it becomes material.