Showa Denko K.K announced on January 27 that the company has decided to execute a master agreement with a special-purpose company formed by funds managed by affiliates of Apollo Global Management, regarding a series of transactions, including the succession of the aluminum can business of the company to Showa Aluminum Can Corp., which is a wholly owned consolidated subsidiary of the company, and the succession of the aluminum rolling business to Showa Denko Sakai Aluminum Corp., which is a wholly owned non-consolidated subsidiary of the company, by company splits (absorption-type company split), with tentative effective dates of June 1 2021 and August 2 2021, respectively. (Photo quoted from Showa Denko's official website)

In light of the rapidly changing business environment, Showa Denko has been examining the optimal allocation of management resources and portfolio management to realize sustainable growth. After careful consideration of all available options, the company reached the conclusion that the expansion of the aluminum can business and the aluminum rolling business would be best achieved through business partners that have specialized knowledge and management resources to enable future growth of these businesses together with the employees engaged in the respective business.

Taking these factors into consideration, Showa Denko decided to execute the transactions set forth in the Master Agreement with Apollo, which is one of the world’s leading alternative investment managers and has a wealth of experience supporting aluminum-related industries for more than 20 years.

(IRuniverse)

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