Sumitomo Forestry and Kumagai Gumi Trim Cross-Shareholdings While Deepening Strategic Alliance

The latest announcement is out from Sumitomo Forestry Co ( (JP:1911) ).

Sumitomo Forestry Co., Ltd. and Kumagai Gumi Co., Ltd. announced a mutual reduction of their cross-shareholdings within their long-standing capital and business alliance, aiming to improve capital efficiency and enhance shareholder value while maintaining and further strengthening their cooperative relationship. Sumitomo Forestry will sell up to 11,473,400 shares of Kumagai Gumi via a secondary offering, including a possible over-allotment and greenshoe option, while Kumagai Gumi will sell 4,777,600 shares of Sumitomo Forestry through a block trade, with both transactions structured so that each company reduces its holdings on an equal and proportional basis. The alliance itself remains intact, with both firms committing to continued collaboration that combines Sumitomo Forestry’s expertise in wood-based, environmentally oriented construction with Kumagai Gumi’s civil engineering capabilities to support growth in infrastructure projects that harmonize with the natural environment. The impact on Sumitomo Forestry’s consolidated results is expected to be minor, whereas Kumagai Gumi anticipates recording an extraordinary gain from the sale of investment securities in the fourth quarter of the fiscal year ending March 31, 2026, signaling a balance between financial optimization and ongoing strategic partnership for both companies.

The most recent analyst rating on (JP:1911) stock is a Hold with a Yen1846.00 price target. To see the full list of analyst forecasts on Sumitomo Forestry Co stock, see the JP:1911 Stock Forecast page.

More about Sumitomo Forestry Co

Sumitomo Forestry Co., Ltd. is a Japan-based company listed on the Prime Market of the Tokyo Stock Exchange that operates in the timber, housing, and construction-related industries. It focuses on medium- to large-scale wooden construction, environmental greening, and overseas construction and development, leveraging expertise in natural materials such as wood and greenery to develop environmentally harmonized social infrastructure. Kumagai Gumi Co., Ltd., also TSE Prime-listed, is a general contractor specializing in advanced civil engineering and construction technologies, and has maintained a capital and business alliance with Sumitomo Forestry since 2017 to jointly pursue technology sharing and new market development.

Average Trading Volume: 2,747,057

Technical Sentiment Signal: Buy

Current Market Cap: Yen999B

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