New Japan Chemical to Book Special Loss After Divesting Stake in Edenor Oleochemicals Rika

TOKYO, Aug 07 (Pulse News Wire) – New Japan Chemical CO.,LTD. (4406.T) decided to divest its entire stake in Edenor Oleochemicals Rika (M) Sdn.

Bhd. (EOR) to Edenor Oleochemicals (M) Sdn. Bhd. (EOM). The move follows EOM's parent company, Edenor Technology Sdn. Bhd., being placed under judicial management on May 20, with a judicial management order issued on July 22.

As a result, EOR’s ongoing operations became unsustainable, prompting the decision to dissolve the joint venture and sell the shares. Under the agreement, New Japan Chemical will transfer 27,343,750 shares of EOR to EOM, resulting in a loss of control. The transaction is expected to close in October-November 2026, subject to regulatory approval. In the second quarter of fiscal 2027, the company anticipates recognizing individual losses of August 07, 2026 and consolidated losses of approximately November 22, 1982. This strategic shift aims to maintain the group's financial health and minimize future risks associated with the troubled Malaysian subsidiary. For more detailed forecasts, refer to the separately released earnings outlook revision notice for the fiscal year ending March 2027.