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Shinko Wire surges in afternoon trading as Kobe Steel announces plan for complete subsidiary through simplified share exchange
SHINKO WIRE COMPANY, LTD. <5660> surged in afternoon trade. Its parent company, KOBE STEEL, LTD. <5406>, announced around 1:00 p.m. that it will make Shinko Wire a wholly owned subsidiary through a simplified share exchange, triggering a rally as investors reacted to the exchange ratio.
Effective September 1, Kobe Steel will allot 0.94 shares for each share of Shinko Wire. Consequently, Shinko Wire will be delisted from the Tokyo Stock Exchange Standard Market on August 28, with its final trading day scheduled for August 27. Kobe Steel currently holds a 43.48% stake in Shinko Wire. By fully integrating the capital structure, the companies aim to maximize management resources and accelerate growth through entry into new fields, expanded overseas strategies, and enhanced collaboration with other secondary processing manufacturers under swift, agile decision-making.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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