Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and CEO: Ueno Shingo; hereinafter 'Sumitomo Corporation') has concluded a share transfer agreement to transfer its 82.84% stake in SC Airbag Systems Co., Ltd. (Head Office: Matsuura City, Nagasaki Prefecture; Representative Director and President: Hiramatsu Tatsuhisa), a manufacturer and distributor of airbag cushions, to SC Airbag Holdings Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; Representative Director and President: Okawachi Ou; hereinafter 'SC Airbag Holdings'). SC Airbag Holdings was established in May 2024 with 100% investment from a fund established by REVA Co., Ltd., an independent investment company in which Sumitomo Corporation has invested and dispatched personnel.

The transfer of shares is scheduled to be completed in early November 2024 after going through various approval procedures required by law.

Sumitomo Corporation has set out a business portfolio transformation initiative in its Medium-Term Management Plan 2026 announced in May 2024, and this transaction is part of that initiative.

The company plans to record a loss of approximately 5 billion yen, equivalent to its share of the investment, as a result of this share transfer, and has factored the impact on its financial results into its full-year profit forecast for fiscal year 2024.

(C) 2024 Electronic News Publishing, source ENP Newswire