April 25, 2017

Press Release

SEKISUI CHEMICAL CO., LTD.

Notice of Acquisition of Management Rights to "Polymatech Japan Co., Ltd. Group"

SEKISUI CHEMICAL CO., LTD. (Headquarters: Osaka City, Osaka Prefecture, President: Teiji Koge, hereinafter called "SEKISUI") has today signed an agreement with PT Cayman Limited., with which

CITIC Capital Partners Japan Limited. (Headquarters: Hong Kong/ Japan office: Chiyoda-ku, Tokyo, Senior Managing Director: Hironobu Nakano) has had ties in terms of information sharing, to acquire 91% of all the issued shares of PT Cayman Limited. (hereinafter called "PT Cayman") . PT Cayman has eight wholly owned subsidiaries such as Polymatech Japan Co., Ltd. (Headquarters: Saitama City, Saitama Prefecture, CEO: Jun Yamazaki, hereinafter called "PJ"), which manufactures and sells electronics parts for automobiles and mobile terminals. SEKISUI will aim to expand its business in the automotive and transportation field and to reinforce its core technologies such as materials formulation and processing technologies through the acquisition of the PT Cayman shares.

Inabata & Co., Ltd. (Headquarters: Osaka City, Osaka Prefecture, President: Katsutaro Inabata, hereinafter called "Inabata") has also today concluded an agreement with PT Cayman Limited. to receive the remaining 9% of the PT Cayman shares.

--Note --

  1. Background

    SEKISUI's High Performance Plastics Company (President: Keita Kato) is not only actively expanding its business in the automotive and transportation field that it positions as one of the strategic fields, and but is also, these days, putting its energies into driving product development, conducting market research and cultivating new markets in the car electronics area by using its human resources and expertise accumulated in the electronic field, another strategic one.

    Meanwhile, Inabata, which is also a specialist chemicals trading company, has also planned in recent years

    to expand its business in automobile-related fields, considering that this joint investment would contribute to enhancing the PJ Group's value through effective use of strengths of Inabata and PJ.

  2. Objective of the Acquisition of PJ Group Management Rights

    SEKISUI and PJ, which are strong in development and production of high-performance resin processed products for automobiles and electronics applications, plan to expand business using their combined management resources.

  3. Accelerating inroads into car electronics area

    In the car electronics area, SEKISUI will promote heat dissipation materials on which PJ has great expertise and technologies as well as display device materials at which SEKISUI excels with PJ.

  4. R&D synergy

    SEKISUI will enhance its R&D through the fusion of its technologies with the PJ's "high level materials blending and design technology and production technology for silicon and elastomers" and "different materials complex molding technology for resins and metals."

  5. Cooperative corporate marketing synergy

    SEKISUI will further intensify its marketing activities in both of the automobile and electronics fields using the two companies' global bases.

  6. Complementary synergy in distribution channels

    SEKISUI will expand its sales channels of its existing automobile and electronics products using the sales networks of all the three companies, including Inabata.

  7. Summary of PJ Group
  8. Company name: Polymatech Japan Co., Ltd.

  9. Headquarters location: 8-10-1 Tajima, Sakura-ku, Saitama City, Saitama Prefecture

  10. Representative's name : Jun Yamazaki (CEO)

  11. Principal Business: Production and sale of vehicle and electronics parts

  12. *Its main products: Car audio vibration suppressors, vehicle switches, connector parts, heat dissipation materials, and parts for wearable devices

    (5) Capital: 990,050,000 yen

    1. Established: November 2012

    2. Main business bases: Sales: (Japan) HQ, Nagoya City

      (Overseas) USA, China, Thailand, Indonesia*1 Production: (Japan) HQ

      (Overseas) China, Thailand, Indonesia*1

      *1 The overseas bases, which are subsidiaries of PT Cayman, are designated as PJ's sales and production bases.

    3. Latest business results: Net sales: 20.1 billion yen

      Operating profits: 1.94 billion yen (as of December 2016)*2

      *2 These figures were calculated on a consolidated basis, including those of the main business bases described in the above-mentioned (7).

    4. Website: http://www.polymatech.com/index.html

    5. Acquisition Value

      A total of approximately 20 billion yen (Scheduled).

      The amount is to be invested in proportion to the shareholding ratio of SEKISUI and Inabata respectively.

    6. Schedule

      April 25, 2017: Date of conclusion of the agreement

      August 31, 2017 : Closing date of the transaction (Expected)

    7. Impact on SEKISUI's Financial Results

      An impact of this acquisition on SEKISUI's consolidated financial results for the fiscal year ending March 31, 2018 will be incorporated in the "Consolidated Outlook for FY2018" in the "Summary of Consolidated Financial Results for the Second Quarter of Fiscal Year Ending March 31, 2018."

      And the SEKISUI's consolidated outlook for the fiscal year ending March 31, 2018 is scheduled to be released on April 27, 2017

    8. Addendum
    9. This share transfer is subject to approval of the relevant authorities.

      --End--

    Sekisui Chemical Co. Ltd. published this content on 25 April 2017 and is solely responsible for the information contained herein.
    Distributed by Public, unedited and unaltered, on 25 April 2017 06:11:33 UTC.

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