Taiyo Holdings Co., Ltd. signed a basic agreement to acquire 51% stake in Onstatic Technology Co., Ltd. from Advance Materials Corporation, Goo Chemical Co. Ltd., and 31 corporations and individuals for ¥5 billion.
August 09, 2012 at 12:00 am EDT
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Taiyo Holdings Co., Ltd. (TSE:4626) signed a basic agreement to acquire 51% stake in Onstatic Technology Co., Ltd. from Advance Materials Corporation (GTSM:3585), Goo Chemical Co. Ltd. (OSE:4962), and 31 corporations and individuals for ¥5 billion on August 9, 2012. Taiyo Holdings will acquire 16.19 million shares of Onstatic. Advance Materials Corporation will sell 4.49 million shares and Goo Chemical will sell 4 million shares and Goo Chemical will receive ¥1.3 billion as consideration. Post completion, Advance Materials' stake in Onstatic will reduce from 22.2% to 8.1% and Goo Chemical's stake in Onstatic will reduce from 19.9% to 7.2%. There will be a negotiating for additional shares to be acquired after this share transfer. Onstatic Technology reported sales of ¥3.37 billion, profit before taxation of ¥240.23 million, profit after taxation of ¥190.14 million and net assets of ¥3.06 billion for the year ending March 2012.
In October 2012, the Fair Trade Commission of Taiwan approved the transaction. As of November 22, 2012, Taiyo Holdings Co., Ltd. acquired 8.1 million shares in Onstatic Technology Co., Ltd. representing 25.5% stake, whereas Advance Materials Corporation sold 2.24 million shares representing 7.1% stake and Goo Chemical Co. Ltd. sold 2 million shares representing 6.3% stake for ¥631 million. The transaction was resolved by the Board of Directors of Taiyo Holdings on August 9, 2012 and is expected to close in late February 2013. As of February 28, 2013, the closing date will be decided on confirmation. Goo Chemical Co. Ltd will record ¥390 million in the consolidated balance sheet and ¥357 million in the individual balance sheet as extraordinary profit as profit from the sale of investment securities. The transaction is expected to close by May 16, 2013.
Advance Materials Corporation is principally engaged in the manufacture, processing and distribution of glass fiber cloth prepregs (PPs) and copper clad laminates (CCLs), the trading of chemicals and the contracted lamination of various printed circuit boards (PCBs). The Company is also engaged in the sale of imaging solder resist inks and various glues for substrate materials, the trading of other related electronic materials, as well as the sale of touch panel materials and hard and soft composite plate materials. The Company distributes its products in Taiwan and other markets in Asia.
Taiyo Holdings Co., Ltd. signed a basic agreement to acquire 51% stake in Onstatic Technology Co., Ltd. from Advance Materials Corporation, Goo Chemical Co. Ltd., and 31 corporations and individuals for ¥5 billion.