Shinko Plantech Co., Ltd. entered into a memorandum of understanding to acquire JX Engineering Corporation from JXTG Holdings, Inc. and Nippo Corporation for ¥8.7 billion.
JX Engineering reported net assets of ¥17.58 billion, total assets of ¥34.4 billion, net sales of ¥50.11 billion, operating profit of ¥2 billion and net profit of ¥1.4 billion as of March 31, 2018. Deal is subject to approval at Shinko Plantech's shareholders' meeting and the receipt of any permits and approvals from relevant authorities necessary, any other regulatory approvals necessary, for the management integration which is also expected between JX Engineering Corporation, Shinko Plantech and JXTG Holdings and is expected to occur by April 1, 2019, and Definitive agreement. Shinko Plantech, which will be a surviving company, is expected to continue listing its ordinary shares on the first section of the Tokyo Stock Exchange on and after the effective date of the management integration. As of December 20, 2018, a resolution has been passed by board of directors of Shinko Plantech Co., Ltd. and on April 22, 2019, the transaction is approved by shareholders of Shinko Plantech Co., Ltd. The transaction is expected to occur by July 19, 2019. Anderson Mori & Tomotsune LPC acted as legal advisor for Shinko Plantech and SMBC Nikko Securities acted as valuer in the transaction.