Major Japanese stationery company Kokuyo is preparing a ¥28.0 billion capital increase through its Singapore subsidiary to acquire Thien Long. The transaction is pending approval, and the timing has not been determined.
On 30 September, Kokuyo's board approved a capital increase plan for its Singapore-based wholly owned subsidiary Synergy Investing ASIA and disclosed the amount of the capital increase for the share acquisition involving a capital transfer. The capital increase is expected to total ¥28.0 billion (approximately US$180 million), to be used to fund the acquisition of shares in Thien Long Group and its affiliates. Kokuyo will provide all of the new capital and retain 100% ownership of Synergy Investing ASIA.
Following the capital increase, Synergy Investing ASIA's capital will exceed 10% of Kokuyo's capital, making it a major subsidiary of Kokuyo and the entity responsible for the central role in executing the transaction with Thien Long. It is scheduled to be established in Singapore in December 2025.
The move follows progress in the legal procedures for the transaction between Kokuyo and Thien Long. The National Competition Commission determined in September that the transaction constituted a conditional economic concentration. The transaction can therefore proceed, subject to compliance with conditions set by the regulator.
Kokuyo has estimated the total transaction value at approximately ¥27.6 billion and announced plans to acquire Thien Long from the end of 2025. Following completion of the acquisition, it is expected to acquire up to 65.01% of the shares through a tender offer, potentially making Thien Long a subsidiary of Kokuyo.