Chemicals producer Showa Denko K.K. said recently that it intends to boost its stake in liquefied carbon dioxide gas maker Showa Tansan Co, through a friendly tender offer that will see its share of the company rise to around 50%.
Showa Denko will buy up to 7.17 million Showa Tansan shares for a maximum ¥2.978m in the offer, with the per-share acquisition price at ¥415 against a closing price of ¥296 on 20th May 2008 on the second section of the Tokyo Stock Exchange.
As a result, Showa Denko’s stake will rise to up to 50.1% from 20.58% at present.
Showa Denko’s plant in Kawasaki, Kanagawa Prefecture, supplies carbon dioxide gas generated as an ammonia by-product to an adjacent Showa Tansan plant.
Showa Tansan was set up in 1944 as a joint venture between Showa Denko and the predecessor of food maker Nichirei Corp. At present, Showa Denko and Nichirei are the top shareholders in the company.