Kumagai Gumi and Sumitomo Forestry Cut Cross-Shareholdings While Deepening Alliance

Kumagai Gumi Co ( (JP:1861) ) just unveiled an announcement.

Kumagai Gumi Co., Ltd. and Sumitomo Forestry Co., Ltd. announced coordinated reductions in their cross-shareholdings as part of efforts to improve capital efficiency while maintaining and deepening their capital and business alliance. Sumitomo Forestry plans to sell up to 11,473,400 shares of Kumagai Gumi through a secondary offering, while Kumagai Gumi will sell 4,777,600 shares of Sumitomo Forestry via a block trade, with both disposals conducted on an equal, proportional basis and no further share sales planned. The companies said the alliance—centered on combining Sumitomo Forestry’s expertise in wood-based construction and environmental greening with Kumagai Gumi’s advanced civil engineering and construction technologies—will continue unchanged, and Kumagai Gumi will remain an equity-method affiliate of Sumitomo Forestry. The impact on Sumitomo Forestry’s earnings is expected to be minor, whereas Kumagai Gumi will book an extraordinary gain on the sale of investment securities in the fourth quarter of the fiscal year ending March 31, 2026, providing a one-off boost to its results while signaling a more disciplined approach to capital structure and shareholder value.

The most recent analyst rating on (JP:1861) stock is a Buy with a Yen1752.00 price target. To see the full list of analyst forecasts on Kumagai Gumi Co stock, see the JP:1861 Stock Forecast page.

More about Kumagai Gumi Co

Kumagai Gumi Co., Ltd. is a Japan-based general contractor engaged in civil engineering and building construction, while alliance partner Sumitomo Forestry Co., Ltd. operates in the forestry, housing, and construction-related fields with a focus on wood-based materials and medium- to large-scale wooden construction, environmental greening, and overseas development. Together, they leverage complementary strengths in natural materials and advanced engineering to develop infrastructure and construction projects that emphasize harmony with the natural environment.

Average Trading Volume: 708,023

Technical Sentiment Signal: Buy

Current Market Cap: Yen281.2B

See more data about 1861 stock on TipRanks’ Stock Analysis page.