Toray Industries Inc TAK Signs Agreement to Purchase Woongjin Chemical (0069T)
November 14 2013 - 2:01AM
UK Regulatory
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RNS Number : 0069T
Toray Industries Inc
14 November 2013
November 6, 2013
Toray Industries, Inc.
Toray's Consolidated Subsidiary Signs Agreement to Purchase
Stake in Woongjin Chemical in Korea
Toray Industries, Inc. (headquarters: Chuo-ku, Tokyo; President:
Akihiro Nikkaku; hereinafter referred to as "Toray") today
announced that Toray Advanced Materials Korea Inc. (headquarters:
Seoul, Republic of Korea; Chairman & CEO: Lee Young-kwan;
President & COO: Kim Sang-pil; hereinafter referred to as
"TAK"), its consolidated subsidiary in Republic of Korea, agreed on
November 6 (Wednesday) with Woongjin Holdings Co., Ltd.
(headquarters: Seoul, Republic of Korea; Chairman: Yoon Seok-Keum)
and others to purchase a 56.2% stake in Woongjin Holdings'
subsidiary Woongjin Chemical Co., Ltd. (headquarters: Seoul,
Republic of Korea; President: Park Chankoo; herein after referred
to as "Woongjin Chemical") for 430 billion won. TAK had been given
the preferential negotiation right regarding the acquisition of the
shares in Woongjin Chemical on September 27 (Friday).
1. Reason for the share acquisition
The Toray Group's move to acquire the shares of Woongjin
Chemicalis in response to the start of the auction sale process of
the 56.2% stake in the company in April this year by its parent
Woongjin Holdings as part of the group's revival measures against
the backdrop of Woongjin Holdings' financial difficulties.
TAK, which is purchasing the shares, is a diversified chemicals
manufacturer and its predecessor is Toray Saehan Inc., a joint
venture established in 1999 by Toray and Saehan of Korea. In 2010,
Toray acquired the entire stake held by Saehan and made the company
its wholly owned subsidiary.
Woongjin Chemical used to be known as Saehan, until it was
acquired and renamed by the Woongjin group in 2008. As it used to
be the same company as TAK prior to 1999, both companies have
plants in the same premise and have close relationship even now,
with Woongjin Chemical providing utility and welfare service to
TAK.
TAK's acquisition of a majority stake in Woongjin Chemical
provides the Toray Group control of Woongjin Chemical's main
business of fibers and textiles as well as its water treatment
filter business, which has grown in recent years and has been
improving profitability. Toray decided on the share acquisition on
expectations that it would expand and enhance TAK's business
foundation while enabling strategic utilization of the company and
generating synergies in the overall business development of the
Toray Group.
Once the acquisition is completed, Toray will leverage Woongjin
Chemical's management and human resources as well as its
technologies in pursuit of sales expansion of high value added
products on a global basis through its integrated operation as part
of Toray Group with the aim of maximizing synergies from the share
acquisition.
2. Profile of the subsidiary (TAK), which is acquiring the
Woongjin Chemical stake
(1) Name Korean name:
English name: Toray Advanced Materials Korea Inc.
(2) Location Seoul, Republic of Korea
(3) Representative Chairman & CEO: Lee Young-kwan
President & COO: Kim Sang-pil
(4) Capital 475 billion won
(5) Investment ratio Toray 100%
(6) Established October 1999 (The company changed its name in May 2010)
(7) Business Manufacture and distribution of PET film, polyester fibers, non-woven fabric, processed film
products, materials for printed circuits, water treatment membrane modules, and carbon fibers
3. Profile of the subsidiary subject to change (Woongjin
Chemical)
(1) Name Woongjin Chemical Co., Ltd. (Listed on KRX)
(2) Location Seoul, Republic of Korea
(3) Representative CEO Park Chankoo
(4) Capital 237.2 billion won
(5) Investment ratio Woongjin Holdings Co., Ltd. 46.3%
(6) Established 1972
(7) Business Manufacture and distribution of high-performance fibers, water treatment filter, A-PET sheets
(cast film), etc.
4. Schedule
(1) Corporate Resolution September 27, 2013
(2) Conclusion of the agreement November 6, 2013
(3) Share acquisition date January 2014 (scheduled)
*While the share acquisition date is expected to be in January
2014, it is subject to change, as the acquisition will take place
only after competition law-related procedures are completed in all
regions including China.
5. Future outlook
The concrete impact of this share acquisition on Toray's
consolidated financial results is yet to be determined at the point
of this announcement. The company shall swiftly announce as soon as
any event that requires disclosure occurs in the future.
In this transaction, Toray has retained Nomura Securities Co.,
Ltd. as the financial advisor and Kim & Chang as the legal
advisor.
# # #
This information is provided by RNS
The company news service from the London Stock Exchange
END
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