Nippon Denko


Notice Regarding Changes in Consolidated Subsidiary (Share Transfer)


Nippon Denko Co., Ltd. (the “Company”)  hereby announces that the Company has decided to transfer all shares (1,118,000 shares) in its consolidated subsidiary Kyoei Mercantile Co. Ltd. to Tosoh Nikkemi Corporation as follows.
As a result of this share transfer, Kyoei Mercantile Co. Ltd., will be excluded from its consolidated subsidiary.

    1. Purpose of the share transfer
      Under its medium-term management plan, which began in 2021, the Company is concentrating its management resources on the four core businesses of its group (ferroalloys, functional materials, environment, and electric power) in an effort to further increase its corporate value. Under these circumstances, Kyoei Mercantile Co. Ltd. operates a trading company centered on industrial chemicals and has little synergy with its Group's four core businesses. Therefore, the Company has decided to transfer the Kyoei Mercantile's shares to Tosoh Nikkemi Corporation and entrust it with further development in the future.
    2. Kyoei Mercantile profile
      Location 4-13-4 Hatchobori, Chuo-ku, Tokyo, Japan
      Representative Tomohiko Kawasaki
      Business Trading of industrial chemicals, synthetic resin raw materials and products, ferroalloys and special metals, and polishing materials
      Capital ¥99 million
      Revenue ¥6.19 billion (actual sales for FY2023)
      Shareholding ratio 93.2%
    3. Tosoh Nikkemi profile
      Location 2-5-10, Shiba, Minato-ku, Tokyo, Japan
      Representative Jun Oyamada
      Business Wholesale of organic and inorganic chemicals and raw material resins, sales of resin products
      Capital ¥200 million
    4. Date of share transfer:The share transfer is scheduled for March 31st, 2023.
    5. Outlook for the future
      The impact of the share transfer on consolidated business results for the fiscal year ending December 31st, 2023, is expected to be negligible.
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