Taiyo Holdings Co., Ltd. (TSE:4626) signed a basic agreement to acquire 51% stake in Onstatic Technology Co., Ltd. from Advance Materials Corporation (GTSM:3585), Goo Chemical Co. Ltd. (OSE:4962), and 31 corporations and individuals for ¥5 billion on August 9, 2012. Taiyo Holdings will acquire 16.19 million shares of Onstatic. Advance Materials Corporation will sell 4.49 million shares and Goo Chemical will sell 4 million shares and Goo Chemical will receive ¥1.3 billion as consideration. Post completion, Advance Materials' stake in Onstatic will reduce from 22.2% to 8.1% and Goo Chemical's stake in Onstatic will reduce from 19.9% to 7.2%. There will be a negotiating for additional shares to be acquired after this share transfer. Onstatic Technology reported sales of ¥3.37 billion, profit before taxation of ¥240.23 million, profit after taxation of ¥190.14 million and net assets of ¥3.06 billion for the year ending March 2012.

In October 2012, the Fair Trade Commission of Taiwan approved the transaction. As of November 22, 2012, Taiyo Holdings Co., Ltd. acquired 8.1 million shares in Onstatic Technology Co., Ltd. representing 25.5% stake, whereas Advance Materials Corporation sold 2.24 million shares representing 7.1% stake and Goo Chemical Co. Ltd. sold 2 million shares representing 6.3% stake for ¥631 million. The transaction was resolved by the Board of Directors of Taiyo Holdings on August 9, 2012 and is expected to close in late February 2013. As of February 28, 2013, the closing date will be decided on confirmation. Goo Chemical Co. Ltd will record ¥390 million in the consolidated balance sheet and ¥357 million in the individual balance sheet as extraordinary profit as profit from the sale of investment securities. The transaction is expected to close by May 16, 2013.

Taiyo Holdings Co., Ltd. (TSE:4626) completed the acquisition of 51% stake in Onstatic Technology Co., Ltd. from Advance Materials Corporation (GTSM:3585), Goo Chemical Co. Ltd. (OSE:4962), and 31 corporations and individuals on May 16, 2013.