DIC to Exit TAIYO Holdings Alliance in KKR-Backed Take-Private Deal

DIC ( (JP:4631) ) has issued an update.

DIC Corporation has agreed to a transaction framework under which KKR-backed KJ005 Co., Ltd. will launch a tender offer to take TAIYO HOLDINGS CO., LTD. private, while DIC, an existing equity-method investor, will not tender its shares but will instead have them repurchased later by the target. Once the deal is completed, TAIYO Holdings will be delisted, cease to be an equity-method affiliate of DIC, and DIC’s capital and business alliance with the company, originally aimed at electronics-sector synergies, will be formally terminated.

DIC said shifting market conditions in electronics and TAIYO Holdings’ pivot toward medical and pharmaceutical businesses have constrained further synergy, and that continuing to commit capital there would not best support its own medium- to long-term value. The company concluded that the KKR-led transaction enhances TAIYO Holdings’ corporate value while offering an economically rational exit for DIC and its shareholders, though both parties plan to maintain a stable commercial relationship after the alliance ends.

The most recent analyst rating on (JP:4631) stock is a Buy with a Yen4132.00 price target. To see the full list of analyst forecasts on DIC stock, see the JP:4631 Stock Forecast page.

More about DIC

DIC Corporation is a Japanese materials manufacturer best known for printing inks, coatings, polymers and related functional materials, with a strategic focus on electronics and smart living applications. The company allocates capital to businesses expected to generate swift and reliable profits and routinely reviews its portfolio for alignment with this strategy and long-term value creation.

Average Trading Volume: 655,249

Technical Sentiment Signal: Buy

Current Market Cap: Yen347.7B

For a thorough assessment of 4631 stock, go to TipRanks’ Stock Analysis page.