JAPAN (News release) -- Rengo announced that it was resolved at its Board of Directors' meeting that it will take over all shares for subscription of Taiko Paper Mfg., Ltd. (TPM) through third-party allocation on September 1, 2021 and make it a wholly owned subsidiary.
On March 26, 2021, Rengo has signed a memorandum of understanding (MOU) with TPM to make TPM a wholly owned subsidiary of Rengo on the condition that TPM's reorganization plan is approved by the court. Based on the MOU, Rengo has been providing management support to TPM.
On July 31, 2021, it was confirmed that TPM's reorganization plan has been approved by the Court. Therefore, Rengo will provide TPM with the funds necessary for executing the reorganization plan and make TPM a wholly owned subsidiary, after which Rengo will strive for an early completion of the reorganization proceedings and work to rebuild TPM's management and expand its business operations.
By making TPM a wholly owned subsidiary, Rengo will expand into the manufacturing of kraft pulp and kraft paper which are in the upstream of the Rengo Group's paperboard and heavy duty packaging businesses. In the future, Rengo will see further deepening and rapid progress of the Rengo Group's various core business fields through collaboration with TPM.