Latest Tokyo Brief coverage on Resonac Holdings Corporation, tracking filings, financial news, and market signals from Japan.
TSE:4004
Resonac's in-kind distribution of Crasus Chemical shares took effect on 1 October, leaving it with 18.57% of the voting rights and ending the parent relationship, while the effect on consolidated results is still under review.
Crasus Chemical is now trading in Tokyo, and Resonac expects its October 1 share distribution to leave it with 18.57%, so the petrochemicals unit drops out of both consolidation and equity-method accounting.
Tokyo Stock Exchange approval for Crasus Chemical's listing removes the sole condition on Resonac's planned October 1 split, under which shareholders get one new share for every Resonac share held on September 30 and a ¥303.9bn-revenue petrochemicals business comes off Resonac's consolidated books.
Resonac will distribute shares in its petrochemicals subsidiary directly to its own shareholders on a one-for-one basis, a ¥37.8bn book-value dividend that drops its stake below 20% and pulls the unit out of its consolidated results, assuming Tokyo Stock Exchange approves the listing planned for September 29 ahead of the October 1 distribution.
A petrochemicals spin-off is cutting Resonac's revenue guidance by ¥145bn this year, but AI-linked demand for chip packaging materials is driving its profit forecast up 40% to ¥196bn.
The number: Resonac will hand shareholders more than 80% of Culasus Chemical, its ¥300.3bn petrochemical unit, on October 1. The catch: the same carve-out triggers a formulaic cut to the conversion price on Resonac's 2028 euro-yen convertible bonds, sized by a five-day trading comparison between the two stocks from September 29 to October 5. The board still has to vote on the spin-off in late August, and the exact price adjustment won't be known until after that trading window closes.