Worth reading
42Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Neutral
Direction inferred from the company’s description.Scale
450
¥ hundreds of millions (assets and liabilities assumed)Wording
Conditional
How definitive the wording is.This transaction
Name of transactionCounterparty (target company)Sumitomo Riko Company Limited
Disclosing companySumitomo Electric Industries,Ltd.
TimelineThe spacing between the points is proportional to the actual number of days.
Target company
Manufacture and sale of automotive products and general industrial products, among other businesses
Location Komaki, Aichi PrefectureShare capital ¥12,145 millionDate of incorporation 20 December 1929
Net Sales¥653,248 million (fiscal year ended March 2026)
Operating profit¥38,111 million (fiscal year ended March 2026)
Net income for the current fiscal yearProfit for the period attributable to owners of the parent: ¥23,485 million (fiscal year ended March 2026)
Net assetsTotal equity: ¥274,042 million (fiscal year ended March 2026)
Consideration and expenses
Acquisition priceNo consideration will be paid
Type of ConsiderationFree of charge (no consideration will be paid)
Impact on Business Performance
Immaterial (the impact on the Company's consolidated results will be immaterial)
Procedures and assumptions
Valuation methodologyTaking into consideration that the assets and liabilities to be assumed are equal in amount and that the rights and obligations to be assumed are of equal value
Conditions Precedent to ExecutionAs this transaction constitutes a simplified absorption-type company split and a short-form absorption-type company split, neither company will hold a general meeting of shareholders to approve the absorption-type company split agreement.
Management structure after acquisitionThere will be no changes resulting from this absorption-type company split to the Company's name, location, the title or name of its representative, business activities, stated capital or fiscal year-end.
| Item | Details |
|---|---|
| Transaction name | Name of transaction |
| Counterparty name | Sumitomo Riko Company Limited |
| Name of the Subject Company | Sumitomo Riko Company Limited |
| Business Description of the Subject Company | Manufacture and sale of automotive products and general industrial products, among other businesses |
| Location of the Subject Company | Komaki, Aichi Prefecture |
| Capital Stock of the Subject Company | ¥12,145 million |
| Date of Establishment of the Subject Company | 20 December 1929 |
| Net Sales of the Subject Company | ¥653,248 million (fiscal year ended March 2026) |
| Operating Profit of the Subject Company | ¥38,111 million (fiscal year ended March 2026) |
| Net Income of the Subject Company | Profit for the period attributable to owners of the parent: ¥23,485 million (fiscal year ended March 2026) |
| Net Assets of the Subject Company | Total equity: ¥274,042 million (fiscal year ended March 2026) |
| Acquisition price | No consideration will be paid |
| Type of Consideration | Free of charge (no consideration will be paid) |
| Voting rights ownership percentage | Before 100% (as of 31 March 2026) (after not disclosed) |
| Impact on Business Performance | Immaterial (the impact on the Company's consolidated results will be immaterial) |
| Date of board resolution | 26 June 2026 |
| Contract Date | 26 June 2026 |
| Execution Date / Effective Date | 31 July 2026 (scheduled) |
| Valuation methodology | Taking into consideration that the assets and liabilities to be assumed are equal in amount and that the rights and obligations to be assumed are of equal value |
| Conditions Precedent to Execution | As this transaction constitutes a simplified absorption-type company split and a short-form absorption-type company split, neither company will hold a general meeting of shareholders to approve the absorption-type company split agreement. |
| Management structure after acquisition | There will be no changes resulting from this absorption-type company split to the Company's name, location, the title or name of its representative, business activities, stated capital or fiscal year-end. |
Items this document does not state (11)
Expenses other than the acquisition priceMerger ratio/share exchange ratioTender offer priceMinimum number of shares to be purchasedTender offer periodNumber of shares acquiredFunding arrangementsGoodwill amountAmount of extraordinary income (loss)Independent valuation institutionSpecial Committee
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The purpose is to centralize the Group's bond issuance and bond administration functions at 住友電気工業, strengthen its position as an issuer in the bond market and the Group's financing functions, and reduce the administrative burden arising from 住友理工株式会社's holding of bonds.
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