Tokyo, Japan—Tosoh Corporation has decided to establish a securities disposal trust for the purpose of selling a portion of its stake in Hodogaya Chemical Co., Ltd. on the open market. Hodogaya Chemical is an affiliate accounted for by the equity method.
Hodogaya Chemical will continue to be an equity method affiliate of Tosoh Corporation after the sale of shares. Thus the relationship between the two companies will not change.
1. Profile of Hodogaya Chemical Co., Ltd.
| Paid-in Capital: | ¥11.2 billion |
| Establishment: | December 1916 |
| Business: | Production and sale of information storage media materials, industrial chemicals, dyes, agrochemicals, and others. |
2. Type and Amount of Shares to Be Sold
Tosoh plans to sell a maximum of 11,221,000 common shares of Hodogaya Chemical from among its total holdings of 28,049,000 shares. The Company will set aside the portion of its holdings it intends to sell in a trust.
3. Sales Method
Tosoh plans to establish a securities disposal trust through which to sell the shares based on the discretion of the trustee and taking into consideration market movements.
(a) Stock issue to be placed in trust: Common shares of Hodogaya Chemical Co., Ltd.
(b) Number of shares to be placed in trust: 11,221,000 shares
(c) Duration of trust: August 1, 2012, to February 28, 2013
(d) Consignor and trustee: Tosoh Corporation
Note that the sale of shares will depend on meeting specific conditions and that not all of the shares will necessarily be sold within the trust duration period.
4. Impact on Performance
The impact of this sale of shares on Tosoh Corporation’s consolidated performance is undetermined at this time. Should it subsequently become clear that the share sale will have a major influence on performance, the Company will promptly disclose that fact.
WHO WE ARE
Tosoh Corporation is a Japanese chemical company established in 1935 and listed on the First Section of the Tokyo Stock Exchange. It is the parent of the Tosoh Group, which comprises 130 companies worldwide and a multiethnic workforce of over 11,000 people and generated net sales of ¥687.1 billion (US$8.4 billion at the year-end rate of ¥82.19 to the US dollar) in fiscal 2012, ended March 31, 2012.
WHAT WE DO
Tosoh is one of the largest chlor-alkali manufacturers in Asia. The Company supplies the plastic resins and an array of the basic chemicals that support modern life. Tosoh's petrochemical operations supply ethylene, polymers, and polyethylene, while its advanced materials business serves the global semiconductor, display, and solar industries. Tosoh has also pioneered sophisticated bioscience systems that are used for the monitoring of life-threatening diseases, such as diabetes and certain cancers, and to prevent epidemics by identifying pathogenic microbes. In addition, Tosoh develops products and provides services to purify water and to monitor the environment as part of a commitment to a sustainable future.
Stock Exchange Ticker Symbol: JP: 4042