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Kumagai Gumi, Sumitomo Forestry to form alliance

Jiji Press TOKYO (Jiji Press) — Sumitomo Forestry Co. and general contractor Kumagai Gumi Co. have concluded a capital and business tie-up agreement.

Sumitomo Forestry will become the largest shareholder of Kumagai Gumi, with a stake of 20.0 percent, by acquiring a total of some 9.3 million new and outstanding shares in the firm for ¥34.6 billion, according to the agreement, which was announced on Thursday.

Kumagai Gumi will buy about 5.1 million new shares in Sumitomo Forestry for ¥10 billion to take a 2.85 percent stake in the housing and real estate company.

The new Kumagai Gumi and Sumitomo Forestry shares will be issued later this month under a third-party allotment scheme.

The two Japanese companies will aim to expand their businesses by bringing together their know-how, including on construction of wooden buildings, afforestation and biomass power generation.Speech

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