Sumitomo subsidiary launches tender offer for SCSK shares

Sumitomo Corporation's wholly-owned subsidiary, SC Investments Management Inc., has launched a tender offer to acquire all outstanding shares and stock acquisition rights of SCSK Corporation. This move aims to make SCSK a wholly-owned subsidiary.

SCSK's board of directors has expressed its support for the tender offer, recommending shareholders tender their shares and stock acquisition rights. The acquisition price is 5,700 yen per common share and 1 yen per stock acquisition right. The offer is predicated on SCSK becoming a wholly-owned subsidiary of Sumitomo Corporation through a two-step acquisition process, which would lead to the delisting of SCSK shares from the Tokyo Stock Exchange Prime Market.

SCSK reported Q2 consolidated net sales of 371,279 million yen, up 47.6% year-over-year, and operating profit of 41,606 million yen, a 54.3% increase. Net profit attributable to owners of parent grew 85.1% to 35,614 million yen, with basic earnings per share at 113.91 yen. This strong performance was driven by increased IT investment and the consolidation of Net One Systems Co., Ltd.

In light of the tender offer, SCSK's board of directors has decided to revise its dividend forecast for the fiscal year ending March 31, 2026, to zero yen per share for the fiscal year-end dividend, making the total annual dividend 47.00 yen per share. This adjustment is based on the tender offer price, which assumes no year-end dividend payment.