TOKYO, JAPAN: Unipres Corporation passed a resolution at a meeting of its Board of Directors to enter into a capital alliance with Metaltech Ltd through the underwriting of a capital increase by Metaltech by way of third-party allotment, a release issued to Japan Stock Exchange noted.
Unipres globally supplies pressed automotive parts to automobile manufacturers from its bases in Japan, the Americas, Europe and Asia. Metaltech supplies pressed automotive parts and other components to automobile manufacturers in Japan and Thailand.
Unipres and Metaltech began to collaborate in 2017 in an effort to expand their sales to automobile manufacturers with a focus on Japan and Asia and have made efforts to expand sales through the utilization of two companies’ networks.
In light of the increasingly intense competitive environment prevailing in the automobile industry, Unipres has decided to enter into a capital alliance with Metaltech, with the aim of leveraging the strengths of each company and further enhancing the synergy between the companies.
To strengthen the cooperative ties between the two companies, Unipres will underwrite all 1,000 shares of common stock to be issued through the third-party allotment by Metaltech. As a result of this transaction, Unipres will own 33.3% of total shares of Metaltech, and Metaltech is expected to become an affiliate of Unipres accounted for under the equity method.
Edited by Kazim Rizvi
