Since the 2025 Sumitomo Framework Purchase Agreement will be due to expire on 31 December 2025 and it is expected that the Group will continue to enter similar transactions thereafter, on 27 November 2025 (after trading hours), SEI Optical, a non- wholly owned subsidiary of the Company, and Sumitomo Electric, entered into the 2026 Sumitomo Framework Purchase Agreement, pursuant to which the Sumitomo Electric Group agreed to supply and SEI Optical agreed to purchase optical fibre preforms and related equipment, spare parts and technical services for a fixed term commencing from 1 January 2026 to 31 December 2026 (both dates inclusive). As the Directors have approved the transactions contemplated under the 2026 Sumitomo Framework Purchase Agreement and the independent non-executive Directors have confirmed that the 2026 Sumitomo Framework Purchase Agreement, the related annual cap and the transactions contemplated thereunder are fair and reasonable, on normal commercial terms and in the interests of the Company and its Shareholders as a whole, the 2026 Sumitomo Framework Purchase Agreement, the related annual cap and the transactions contemplated thereunder are subject to the reporting and announcement requirements but are exempted from the circular, independent financial advice and independent shareholders' approval under Rule 14A.101 of the Listing Rules. SEI Optical will purchase optical fibre preforms and related equipment, spare parts and technical services from Sumitomo Electric Group from time to time during the effective term of the 2026 Sumitomo Framework Purchase Agreement.
The transactions under the 2026 Sumitomo Framework Purchase Agreement will be conducted in the ordinary and usual course of business and on normal commercial terms and such pricing basis and payment terms and conditions shall be negotiated on an arm's length basis and be no less favourable to SEI Optical than those available from independent third parties. The selling prices of optical fibre preforms and related equipment, spare parts sold by Sumitomo Electric Group to SEI Optical and the fees of the related technical services provided by Sumitomo Electric Group to SEI Optical are not fixed and to be determined based on the prevailing market prices which are comparable to the prices offered by independent third parties to SEI Optical and to be agreed between the Parties.
Sumitomo Electric Industries Ltd is a Japan-based company mainly engaged in the development, manufacture, sale, and servicing of business products related to environmental energy. The Company operates its business through five business segments. The Environment and Energy-related Business segment provides electrical conductive products, wires, cables, and equipment for power transmission and distribution. The Information and Communication Related Business segment provides optical fiber cables, communication cables and equipment, optical fusion splicers. The Automotive Business segment provides network and system products such as wire harnesses, anti-vibration rubber and automotive hoses. The Electronics-related Business segment provides electronic wires, electron irradiation products, and flexible printed circuits. The Industrial Materials & Others segment provides steel wires for precision springs, steel cords, carbide tools, sintered parts, and semiconductor heatspreader substrates.
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Investor
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ESG MSCI
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