General
Sumitomo Chemical transfers ¥2.4 billion in capital reserves following Koei Chemical share exchange
The move follows the completion of the share exchange on Aug. 1, 2026
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By ICN Bureau | August 04, 2026
Sumitomo Chemical has finalized a ¥2.4 billion reduction in capital reserves created through its share exchange with Koei Chemical Company, Limited, transferring the full amount to other capital surplus with no impact on the company's financial performance.
The move follows the completion of the share exchange on Aug. 1, 2026, under which Sumitomo Chemical became the wholly owning parent company and Koei Chemical became its wholly owned subsidiary. The company had previously announced its intention to make the accounting adjustment in a May 13, 2026, disclosure.
The amount reduced totals ¥2,399,926,534, representing the entire increase in capital reserves generated by the share exchange. The amount has been transferred in full to other capital surplus.
According to the company, the increase in capital reserves was calculated under Article 39 of the Ordinance on Accounting of Companies based on the fair value of 10,603,734 Sumitomo Chemical shares issued as consideration for the transaction.
Because the reduction was executed simultaneously with the share exchange, Sumitomo Chemical's capital reserves remain unchanged from their pre-transaction level. Following the adjustment, capital reserves stand at ¥24,294,406,131.
The company said the accounting measure will have no impact on its operating results.
