Toyobo to absorb subsidiary STC Corp in efficiency drive

Toyobo Corporation's board of directors resolved on November 25, 2025, to absorb Toyobo STC Corporation (STC Corp), a wholly-owned subsidiary, effective April 1, 2026. This absorption-type merger aims to consolidate management resources and improve operational efficiency, following a business reorganization that increased the handling ratio of Toyobo's products within STC Corp. The merger will be conducted as a simplified absorption merger, requiring no shareholder approval for either company.

No new shares will be issued, nor will any merger consideration be paid. Financially, Toyobo expects to record a gain on extinguishment of combined shares of approximately 6,700 million yen as a special profit in its Q1 FY2027 individual financial statements. However, this gain will be eliminated in the consolidated financial statements, resulting in no impact on Toyobo's consolidated earnings.

STC Corp, the disappearing company, primarily engaged in film and functional resin businesses, reported 10,002 million yen in net assets and 15,706 million yen in sales for the fiscal year ended March 2025. This merger will simplify the corporate structure and integrate operations directly under Toyobo.