Kumiai Chemical Industry Co., Ltd. (TSE:4996) executed a share exchange agreement to acquire an additional 51.87% stake in Rikengreen Co., Ltd. (JASDAQ:9992) from a group of sellers for ¥2.1 billion on June 7, 2019. Under the terms of transaction, Kumiai Chemical Industry Co., Ltd. will issue 0.82 share each for every 1 share of Rikengreen Co., Ltd. Kumiai Chemical Industry Co., Ltd. holds 48.12% stake in Rikengreen Co., Ltd. both directly and indirectly; Upon completion, Rikengreen Co., Ltd. will become wholly owned subsidiary of Kumiai Chemical Industry Co., Ltd.

The transaction is subject to approval from shareholders of Rikengreen Co., Ltd. that is scheduled to be held in early August, 2019 and approval from the relevant government agencies. As of July 18, 2019, Rikengreen Co., Ltd issued notice to its shareholders for extraordinary shareholders meeting to be held on August 2, 2019. The transaction has been resolved by the Board of Kumiai Chemical Industry Co., Ltd. and Rikengreen Co., Ltd. The transaction has been unanimously approved by the Board of Rikengreen Co., Ltd. The shares of Rikengreen Co., Ltd. are scheduled to be delisted as of August 29, 2019. The transaction is expected to be completed by August 31, 2019. Mori Hamada & Matsumoto LPC acted as legal advisor and Nomura Securities Co., Ltd. acted as valuer to Kumiai Chemical Industry Co., Ltd. MUFG Bank, Ltd. acted as financial advisor and SATO & Partners acted as legal advisor to Rikengreen Co., Ltd.