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TOKYO, May 29, 2018 - (JCN Newswire) - Showa Denko ("SDK"; TSE:4004) has reached a basic agreement with PT ANTAM Tbk (ANTAM) on the transfer of its shares in PT. INDONESIA CHEMICAL ALUMINA (ICA) to ANTAM. SDK resolved at its Board of Directors meeting earlier today to sell its entire shareholding in ICA to ANTAM. Currently, SDK applies equity method to ICA, while ANTAM is the parent company of ICA and the majority shareholder. SDK announced on July 24, 2017 that it had entered negotiations with ANTAM for the sale of its entire stake in ICA.
1. Outline of ICA
(1) Company name: PT. INDONESIA CHEMICAL ALUMINA
(2) Locations: Head office: Jakarta, Indonesia; Plant: Tayan District, West Kalimantan, Indonesia
(3) Representative: President, Anas Safriatna
(4) Capital: US$188,500 thousand
(5) Shareholders: PT ANTAM Tbk (80%); Showa Denko K.K. (20%)
(6) Establishment: February 2007
(7) Products: Alumina and aluminum hydroxide
2. About the sale of SDK's entire shareholding ICA to ANTAM
(1) Transfer price: Memorandum price
(2) Date of resolution at the board of directors meeting: May 29, 2018
(3) Date of conclusion of share transfer agreement: May 29, 2018
(4) Date of execution of share transfer: August 31, 2018 (planned)
3. Impact on SDK's 2018 financial results
The ICA plant has temporarily stopped operation. Though it is agreed that the two shareholders of ICA will bear any costs in restarting the plant in accordance with the ratio of each company's interest, the influence of the restart cost on SDK's 2018 full-year consolidated financial results is expected to be insignificant.
With regard to ICA, SDK already recorded about 10.0 billion yen as loss on investment to companies under the application of equity method and about 6.7 billion yen as extraordinary losses concerning SDK's suretyship obligation and loans to ICA in SDK's financial results for the first half of 2017.
Reference:
Forecast of 2018 consolidated financial results (announced on May 9, 2018) and actual consolidated financial results for 2017
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(Unit: Millions of yen) Net sales Operating Ordinary Net income
income income attributable
to owners of
the parent
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Forecast of 2018 consolidated financial results
(Jan. - Dec. 2018) 935,000 137,000 131,500 85,000
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Actual consolidated financial results for 2017
(Jan. - Dec. 2017) 780,387 77,818 63,962 33,470
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Contact:
Public Relations Office
Phone: 81-3-5470-3235
Topic: Press release summary
Source: Showa Denko K.K.
Sectors: Chemicals, Spec.Chem
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From the Asia Corporate News Network
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