TOKYO — Toray Industries Inc., Japan’s largest fiber producer, is expected this month to take over majority control of Chori Co., another leading textiles and chemicals trading company.
Toray, which owns a 22.9 percent stake in Chori, expects to increase its equity share to 51.5 percent by buying 28.6 percent of Chori’s equity from Asahi Kasei Corp.
Asahi has agreed to sell all its holdings in Chori to Toray. The buyout plan has the support of Chori’s management, according to Toray, which reportedly is offering to pay about 1.8 billion yen, or $16.3 million at current exchange, for the shares.
Chori’s performance has improved markedly in the past year, with the firm making its first profit in 13 years. For the current fiscal year, Chori is forecasting net income of 3.6 billion yen, or $33 million, on consolidated sales of 250 billion yen, or $2.3 billion.
Toray said both companies will benefit from the closer working relationship, noting that Chori has many years of experience in trading not only in Japan, but also in China and other overseas markets.
— Tsukasa Furukawa