Sumitomo Electric's tender offer leads to Sumitomo Riko delisting

Sumitomo Electric Industries, Ltd., Sumitomo Riko's controlling shareholder, successfully completed a tender offer for Sumitomo Riko shares, increasing its ownership to 92.32% as of December 22, 2025. This makes Sumitomo Electric a special controlling shareholder, leading to a demand for share cash-out for the remaining shares at JPY 2,600 per share.

The cash-out process will result in Sumitomo Riko's delisting from the Tokyo Stock Exchange Prime Market and Nagoya Stock Exchange Premier Market. Trading of Sumitomo Riko shares will cease on January 28, 2026, with the official delisting scheduled for January 29, 2026. The acquisition date for the shares is set for February 1, 2026.

This two-step acquisition aims to integrate Sumitomo Riko into Sumitomo Electric as a wholly owned subsidiary. Sumitomo Electric will fund the cash-out with a JPY 133.5 bn loan from Sumitomo Mitsui Banking Corporation. The board approved the transaction, concluding it would enhance corporate value and offer fair terms to minority shareholders.