The board of directors of Showa Shell Sekiyu K.K. has approved the split of the company’s lubricants business to a wholly owned subsidiary, Shell Lubricants Japan K.K., effective 1st November 2017.
The split, which was announced on 12th May 2017 is to enable the business “to continue to grow with customers, as well as to establish a robust business structure where customers can enjoy stable supplies of the company’s lubricant products, and to facilitate the maintenance and expansion of the current supply of highly regarded products and services to customers in global markets by maintaining and building on the collaborative business relationship with the Royal Dutch Shell Group both in Japan and overseas,” the company said in a statement.
No shares or assets will be allotted or delivered to the company because the company split is between a parent company and its wholly owned subsidiary.
The company has not issued any share options or bonds with share options either.
Further, the company split will neither increase nor decrease the stated capital of the company. Showa Shell Sekiyu K.K. will be the 100% shareholder of Shell Lubricants Japan.
Shell Lubricants Japan, the succeeding company, will take over the assets and contractual status as well as any related rights and obligations necessary to operate the lubricants business in the company split.
Showa Shell’s lubricants business in Japan include manufacturing, storage, transport, sales, export, import and other related businesses. Net sales of Showa Shell’s lubricants business as of Fiscal Year 2016 amounted to JPY51,682 million (USD450.8 million).