Source disclosure: January 28, 2026
OXIDE Corporation [6521.T]
TOKYO, January 28, 2026 - OXIDE Corporation announced today that its board of directors has decided to transfer all shares and loan receivables it holds in its subsidiary Raicol Crystals Ltd., based in Israel. Following this transaction, Raicol Crystals Ltd. will be excluded from OXIDE's consolidated subsidiaries.
OXIDE acquired Raicol Crystals Ltd. in March 2023 with the aim of enhancing product portfolios and sales channels by combining Raicol’s nonlinear optical crystal and electro-optical device technology with OXIDE’s mass production techniques and single-crystal growth technologies. However, shortly after the acquisition, the outbreak of conflict in Israel in October 2023 led to rapid changes in the business environment surrounding Raicol Crystals Ltd. This included employee mobilization due to reserve call-ups and a boycott movement against Israeli products in certain regions. These external factors significantly impacted Raicol’s initial business plans, leading OXIDE to recognize impairment losses on goodwill as early as January 14, 2025.
The performance of Raicol Crystals Ltd. showed steady progress from 2022 until the acquisition in 2023, but deteriorated sharply following the onset of the conflict. Despite internal efforts such as personnel reductions, cost-cutting measures, and restructuring, the company faced continued adverse market conditions. The global demand for Raicol’s products in aerospace and defense applications is expanding; however, ongoing national-level boycotts of Israeli products in Turkey and similar movements among some European companies have resulted in reduced orders across various sectors. As a result, Raicol Crystals Ltd.’s projected earnings for the current fiscal year are expected to show revenues of approximately 15.6 billion yen and operating losses of about 4.5 billion yen.
Given these circumstances, OXIDE concluded that restoring Raicol’s performance to pre-acquisition levels and achieving the original business plan was no longer feasible. Consequently, the company determined that an early divestiture would minimize the impact of external environmental factors and contribute positively to enterprise value. After negotiations with multiple potential buyers, OXIDE opted for a Management Buy-Out (MBO) led by Raicol’s current CEO, Aner Yarden, through an investment limited partnership called "Israel Special Material Platform LP."
Despite the divestiture, OXIDE intends to maintain important cooperative relationships with Raicol Crystals Ltd., including exclusive supply agreements for critical crystals in next-generation semiconductor fields, provision of crystal growth furnaces, and other collaborative ventures post-divestiture. Moving forward, OXIDE will focus its resources on core businesses such as semiconductors and healthcare, while also prioritizing emerging growth areas like quantum computing, data centers, and power semiconductors.
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