Agreement Reached on Sale/Purchase of Shares in PP JV SunAllomer
SHOWA DENKO K.K.
JX NIPPON OIL & ENERGY CORP.
Showa Denko K.K.
August 23, 2016
Showa Denko K.K. (SDK), JX Nippon Oil & Energy Corporation (JX), and LyondellBasell Group (LYB) have reached final agreement concerning the sale/purchase of LyondellBasell’s shares in SunAllomer Ltd. (SunAllomer), a joint venture company among the three parties for production and sale of polypropylene.
Specifically, SDK Sunrise Investment (SSI), owned by SDK and JX, will purchase LYB’s 50% stake in SunAllomer effective August 31, 2016. After the acquisition, an absorption-type merger of SSI and SunAllomer will take place on November 1, 2016 with SunAllomer as the surviving company. The partnership between SunAllomer and LYB in various areas, including technology, marketing, and sales, will be maintained as at present.
For SDK and JX, the polypropylene business constitutes a key element in their olefin chains. Taking this opportunity of acquiring additional shares, the two companies will further strengthen cooperation with SunAllomer, thereby enhancing the competitive power of their polypropylene business.
[Reference] Outline of SunAllomer Ltd.
|Head office||2－24, Higashi Shinagawa 2-chome, Shinagawa-ku, Tokyo|
|Representative||Naoki Nishikawa, President|
|Business line||Development, production and sale of polypropylene (PP) and PP-based advanced materials|
|Production capacity||408 KT/Y(Oita: 281 KT/Y; Kawasaki: 127KT/Y)|
|Establishment||June 1, 1999|
|Shareholders and ownership ratio||SDK Sunrise Investment: 50%
(This company is owned 65% by SDK and 35% by JX.)
LyondellBasell Group: 50%
|Number of shares outstanding||17,600,000|
|Settlement of accounts||December|
|Business results in the past three years (in millions of yen, except net asset per share)|
|Net asset per share||(¥488.84)||(¥500.41)||(¥574.74)|
For more information, contact:
SDK: Public Relations Office (Phone: 81-3-5470-3235)
JX: Public Relations Group, Public Relations Dept. (Phone: 81-3-6257-7150)