Rengo resolved to subscribe for the issuance of 2,150,000 new shares by third party allotment in Toppan Containers Co., Ltd., a wholly-owned subsidiary of Toppan Printing Co., Ltd., and to acquire 340,000 common shares from Toppan Printing to make Toppan Containers a subsidiary of Rengo.
The acquisition of shares and the share transfer are subject to anti-monopoly law-related approval by the Fair Trade Commission of Japan and the Ministry of Commerce of the People’s Republic of China.
Rengo will consider actively making capital investments in Toppan Containers’ plants, and will organize systems to more fully satisfy customers’ future needs by enhancing the production capacity of corrugated packaging and further improving quality.
Even after Toppan Containers has become a subsidiary of Rengo, it will continue the employment all of its employees and will be responsible for distribution channels and supply relating to corrugated packaging with Toppan Printing. Also, Rengo and Toppan Printing will engage in improving Toppan Containers’ performance by cooperatively assisting it with the purchasing of raw materials, production and logistics (excluding sales).
Toppan Containers, the shares in which will be acquired by Rengo, has three corrugated board plants in Japan and is manufacturing corrugated packaging.