Sumitomo Electric Industries, Ltd. announced today that it has agreed to sell its all shares in Sumitomo 3M Ltd. back to the company, accepting the request from Sumitomo 3M to buy back its own shares. Following this transaction, Sumitomo 3M will be excluded from Sumitomo Electric’s affiliates by the equity method.
- 1. Reasons for transaction
- Sumitomo 3M is a joint venture company capitalized by Sumitomo Electric (25%) and the 3M Group (75%). Throughout the course of more than half a century, Sumitomo Electric has built up a favorable relationship with Sumitomo 3M, and it has accepted the request from Sumitomo 3M for the buyback of its own shares.
- 2. Outline of Sumitomo 3M
||December 1, 1961
||Chemical and industrial products, electric and electrical products, reflective materials, tapes and film products
||6-7-29, Kitashinagawa, Shinagawa-ku, Tokyo, Japan
||Koichi Mimura, President
- 3. Date of transaction
- On September 1, 2014, Sumitomo 3M will acquire its own shares from Sumitomo Electric.
- 4. Outlook
- As a result of sale of investment securities, Sumitomo Electric expects an extraordinary income of about 87 billion yen on a non-consolidated basis for the second quarter of the fiscal year ending March 2015 and about 44 billion yen on a consolidated basis.