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  • August 3, 2021

    Rengo Makes Taiko Paper Mfg., Ltd. into a Wholly Owned Subsidiary

    Rengo Co., Ltd. announces that it was resolved at its Board of Directors’ meeting held today 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.
    As announced in the news release “Rengo Enters into Memorandum of Understanding Regarding the Business Reconstruction Support for Taiko Paper Mfg., Ltd.” 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.

    Overview of Taiko Paper Mfg., Ltd. (after becoming a wholly owned subsidiary)

    Address 10 Kamiyokowari, Fuji-shi, Shizuoka Prefecture
    Capital 450 million yen
    Shareholder Rengo Co., Ltd. 100%
    Main business Manufacturing and sales of kraft pulp, kraft paper and specialty paper, and recycling
    Number of employees 191

    Reference

    Net sales of approximately 12 billion yen (for fiscal year ended March 2020, before the filing of application to commence reorganization proceedings)

    TPM's board composition from September 1, 2021 will be organized as follows.
    Appointments as of August 3, 2021 are given in brackets.

    Chairman &
    Representative Director
    Koichi Hirano (Advisor, Rengo Co., Ltd.)
    President &
    Representative Director
    Yoshihisa Shiokawa (President & Representative Director,
    Taiko Paper Mfg., Ltd.)
    Member of the Board Hidehiko Hasegawa   (General Manager assisting Executive Officer in
    charge of Corporate Planning Department,
    Rengo Co., Ltd.)
    Member of the Board Tamotsu Maeda (General Manager assisting Executive Officer in
    charge of Corporate Planning Department,
    Rengo Co., Ltd.)
    Member of the Board Yosuke Suzuki (Senior Executive Officer, Taiko Paper Mfg., Ltd.)
    Member of the Board
    (part-time)
    Kiyoshi Otsubo (Representative Director, Chairman &
    CEO, Rengo Co., Ltd.)
    Member of the Board
    (part-time)
    Osamu Nishimura (Executive Advisor, Rengo Co., Ltd.)
    Audit & Supervisory
    Board Member
    (part-time)
    Yasuhiro Baba (Member of the Board & Executive Vice President,
    Rengo Co., Ltd.)
    Audit & Supervisory
    Board Member
    (part-time)
    Ichiro Hasegawa (Member of the Board & Executive Vice President,
    Rengo Co., Ltd.)