December 24, 2020
Kobe Steel, Ltd.
Kobe Steel, Ltd. announces today that it has decided to cancel the transfer of a portion of the issued shares it holds in its consolidated subsidiary Kobelco & Materials Copper Tube Co., Ltd. (KMCT) to CTJ Holdings2, Ltd.*1)
Kobe Steel strived to implement the share transfer as stated in the Announcement on Change in Consolidated Subsidiary (share transfer) as of September 27, 2019, despite subsequent changes*2) in the execution date due to the impact of the novel coronavirus (COVID-19) outbreak; however, the company has finally decided to cancel the planned share transfer*3) for the following reason.
After considerable discussion with Japan Industrial Partners, Inc., Kobe Steel has decided to cancel the planned share transfer because it was deemed difficult to implement the transfer as the outlook for financial, economic, and other business conditions became unclear in the face of changes in the environment due to the COVID-19 outbreak and other factors.
Although the share transfer has been canceled, KMCT and Daishin P&T Co., Ltd. (a subsidiary of CTJ Holdings2, Ltd.) will consider collaboration in the copper tube business. Specifically, Daishin P&T plans to transfer part of its copper tube business at its Amagasaki Plant to KMCT’s Hatano Plant. We will also consider and implement other measures to enhance the competitiveness of both companies, including our overseas subsidiaries.
The cancellation of the share transfer is anticipated to have an insignificant impact on Kobe Steel’s consolidated business results.
*1) CTJ Holdings2, Ltd., which underwent an organizational change from CTJ Holdings2 LLC on March 25, 2020, is a special purpose company in which all equity is indirectly held by Japan Industrial Partners, Inc.
*2) The following is the list of announcements regarding changes in the scheduled execution date of this share transfer.
*3) With the cancellation of the share transfer, Kobe Steel has agreed to terminate the share transfer agreement with CTJ Holdings2, Ltd and Mitsubishi Materials Corporation.
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