SUMITOMO CHEMICAL COMPANY,LIMITED [4005.T]
TOKYO, May 13 (Pulse News Wire) – Sumitomo Chemical Company,limited (4005.T) announced today that its board of directors resolved to reduce the amount of its capital reserve fund and transfer it entirely to additional paid-in capital. This decision follows the planned share exchange scheduled for August 1, 2026, aimed at making Koyo Chemical Co., Ltd.
A wholly-owned subsidiary. The reduction in the capital reserve fund is intended to facilitate more flexible capital management post-share exchange. According to the agreement, the increase in the capital reserve fund resulting from the share exchange will be halted, and the entire amount will be transferred to additional paid-in capital immediately upon the effectiveness of the share exchange.
The precise amount of the capital reserve fund reduction will be disclosed once finalized. The timeline for this action includes a creditors' objection period from June 16 to July 15, 2026, with the effective date set for August 1, 2026, coinciding with the share exchange's effective date. The move does not impact the company’s net assets or performance.
This adjustment ensures that Sumitomo Chemical maintains operational flexibility while adhering to regulatory requirements, without affecting its overall financial standing.
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