DC Advisory advises Sumitomo Riko on its privatization

Background

• Sumitomo Electric Industries is a Japanese manufacturer and distributor of electric wires, cables, and related equipment worldwide
• Sumitomo Riko Company Limited (SRK) is a Japanese manufacturer of rubber and other synthetic resin products for industries including Automotive, Infrastructure, and Healthcare
• Sumitomo Electric, parent company of SRK, holds 50.81% of its shares through its subsidiaries and affiliates. Since 1942, SRK has been a consolidated subsidiary of Sumitomo Electric 

Process

• DC Advisory was appointed as financial advisor to Sumitomo Riko

Outcome

• The tender offer commenced on 31 October and concluded in December. After the completion of the tender offer on 22 December, and subsequent squeeze out procedure, SRK is now a wholly owned subsidiary of Sumitomo Electric 
• The transaction aims to develop SRK’s technologies, enable expansion into new markets, and strengthen the capabilities of the group