Toyo Seikan Group Holdings, Ltd. cancelled the acquisition of Hokkan Holdings Limited from a group of investors.
March 30, 2018
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Toyo Seikan Group Holdings, Ltd. (TSE:5901) signed a memorandum of understanding to acquire Hokkan Holdings Limited (TSE:5902) from a group of investors in stock on April 25, 2016. The execution of definitive agreement is expected to be signed by the end of 2016. The share exchange ratio will be decided upon consultation between Toyo Seikan and Hokkan Holdings and advice provided by the external institutions nominated. Pursuant to the transaction, Toyo Seikan Group HD will be wholly-owning parent company of Hokkan Holdings Limited and a new trade name for Toyo Seikan Group HD will be discussed. Upon completion, Tsunenobu Kudo, President and Representative Director of Hokkan HD will serve as Vice-president and Director. The common stock of Hokkan HD is scheduled to be delisted prior to the effective date of the share exchange.
The meeting of shareholders of Hokkan Holdings is to be held in February 2017 and Toyo Seikan Group HD will conduct the share exchange without the approval of its shareholders' meeting. The deal is subject to approval of Hokkan's shareholders. The deal is expected to be closed on April 1, 2017.
Toyo Seikan Group Holdings, Ltd. (TSE:5901) cancelled the acquisition of Hokkan Holdings Limited (TSE:5902) from a group of investors in stock on March 30, 2018. The transaction is terminated as the business combination review by the Fair Trade Commission continues, and the prospects for this management integration realization are unobservable. Due to the decrease in the demand of metal cans after the conclusion of this basic agreement, expected benefits after this management integration will not be as much as the initial assumption.
HOKKAN HOLDINGS LIMITED is a Japan-based company mainly engaged in the manufacture and sale of containers, the contract filling of various beverages, as well as the manufacture and sale of machinery. The Company operates in three business segments. The Container segment is engaged in the manufacture and sale of empty cans for beverages and food cans, and plastic containers for cosmetics, detergents and chemicals. The Filling segment is engaged in the contract filling of beverages such as tea, coffee, juice and water, as well as the contract manufacture and sale of dairy products. The Machinery Manufacturing segment is engaged in the manufacture and sale of canning machines, specialty machines and dies. The Company is also engaged in the transport work in factories, the contract manufacture and sale of various cosmetics, the manufacture and filling of containers for soft drinks, as well as contract filling of beverages such as tea, coffee and juice overseas.
HOKKAN HOLDINGS LIMITED 