Shinko Wire Company, Ltd. (TSE:5660) concluded the merger contract to acquire remaining 42.1% stake in Tesac Wirerope Co., Ltd from Kobe Steel, Ltd. (TSE:5406) for ¥12.8 billion on September 28, 2017. Under the terms of the transaction, Shinko Wire Company will allot its 1108 shares for each share of Tesac Wirerope. A total of 7.1 million shares will be issued as consideration. Shinko Wire Company, Ltd. will issue 6.67 million treasury shares and 0.43 million new shares. Post transaction, Tesac Wirerope Co., Ltd will be absorbed and merged by Shinko Wire Company, Ltd. Shinko Wire Company, Ltd will be the surviving entity. Kobe Steel, Ltd will hold 43.6% stake in Shinko Wire Company, Ltd. The transaction is subject to approval by shareholders of Tesac Wirerope at a meeting to be held on November 21, 2017. The transaction is resolved by the Board of Shinko Wire Company and Kobe Steel on September 28, 2017. The transaction is expected to complete on April 1, 2018.

Shinko Wire Company, Ltd. (TSE:5660) cancelled the acquisition of remaining 42.1% stake in Tesac Wirerope Co., Ltd from Kobe Steel, Ltd. (TSE:5406) on September 28, 2018.