Showa Denko to sell out its Aluminium division to US investment firm Apollo
On 28th January 2021, the Japanese multinational organization Showa Denko KK stated that it would sell out its aluminium division to American investment firm Apollo Global Management as the manufacturer measures to divest assets.
Showa Denko distinctively plans to sell out its aluminium rolling business for electronic components and the aluminium can business.
However, the company did not reveal the details of the deal, but as per the sources it is assumed to be valued around $480.31 million.
The process of selling off the subsidiary is a part of the company’s business portfolio restructure following the $9.2 billion acquisition last year of Hitachi Chemical, a supplier of materials for semiconductors, displays and lithium-ion batteries.
Global private equity firms such as Apollo, KKR and Carlyle Group have been focusing to branch out in Japan by captivating large Japanese companies that coming under financial pressure to sell non-core assets and boost up returns to shareholders.
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