SUMITOMO CHEMICAL COMPANY,LIMITED [4005.T]
TOKYO, May 13 (Pulse News Wire) – Sumitomo Chemical Company,limited (4005.T) and Koyo Chemical Co., Ltd. agreed to a share swap making Koyo Chemical a wholly-owned subsidiary.
The swap ratio is set at 4.91 shares of Sumitomo Chemical per one share of Koyo Chemical. Sumitomo Chemical's board approved the deal on May 13, while Koyo Chemical plans to seek shareholder approval at its annual meeting on June 25. The transaction is expected to take effect on Aug. 1, pending regulatory approvals. Under the agreement, Koyo Chemical’s stock will delist from the Tokyo Stock Exchange on July 30, with trading ceasing on July 29.
Sumitomo Chemical will issue approximately 148.9 million shares to complete the acquisition. The move aims to enhance operational efficiency and technological synergy between the two companies. Both firms engaged independent valuation experts and legal advisors to ensure fairness and transparency in determining the exchange ratio. Sumitomo Chemical holds around 49.1% of Koyo Chemical's outstanding shares prior to the swap. Post-acquisition, Koyo Chemical shareholders will gain liquidity through their newly acquired Sumitomo Chemical shares, which remain listed on the Tokyo Stock Exchange.
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