Autobacs Seven (TYO:9832) has resolved to transfer all shares of its French subsidiary, Autobacs France, which operates eight stores in the country, to FairCap Group for 1 euro.

The transfer, subject to consultation with the subsidiary's Social and Economic Committee under French law, follows a portfolio review aimed at focusing on growth areas, according to a Tokyo bourse filing on Friday.

The share transfer agreement is scheduled for the third quarter of fiscal 2027, pending completion of the consultation process, which is expected to take up to three months.

The transfer is expected to result in a deferred tax benefit of 4.5 billion yen in the interim period and an extraordinary loss of roughly 2.3 billion yen in the third quarter of the fiscal year ending March 2027.