Japan's Showa Denko to sell aluminium business to Apollo (updated)

Resonac Holdings

28/01/2021 03:11

(Recasts with company announcement, background)
    TOKYO, Jan 28 (Reuters) - Japan's Showa Denko KK  4004.T 
said on Thursday it would sell its aluminium business to U.S.
investment fund Apollo Global Management  APO.N  as the
materials maker steps up efforts to divest assets.
    Specifically, Showa Denko said it plans to sell its
aluminium rolling business for electronic components as well as
the aluminium can business.
    The company did not disclose details of the deal, but it is
expected to be valued around 50 billion yen ($480.31 million), a
source briefed on the matter said.
    The divestiture is part of the company's business portfolio
overhaul following the $9.2 billion acquisition last year of
Hitachi Chemical, a supplier of materials for semiconductors,
displays and lithium-ion batteries.
    Global private equity firms such as Apollo, KKR and Carlyle
Group have been looking to expand in Japan, taking advantage of
large Japanese companies coming under pressure to sell non-core
assets and improve returns to shareholders.
    Japanese cosmetics firm Shiseido Co Ltd  4911.T  said last
week it was in talks to sell its lower-priced skincare and
shampoo brands to private equity firm CVC Capital
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($1 = 104.2400 yen)

 (Reporting by Makiko Yamazaki
Editing by Chris Reese and Christian Schmollinger)
 ((Makiko.Yamazaki@thomsonreuters.com; +81-3-4563-2805;))