Standard Engineering Technology to invest ¥3.15 bn in GL HAKKO for 51.07% stake

Standard Engineering Technology Limited’s board has approved a strategic investment of up to Japanese Yen 3,152 million (approximately ?1,860 million) to acquire a controlling 51.07% stake in GL HAKKO Co., Ltd., a Japan-based process equipment manufacturer. The investment aims to strengthen the company’s technological capabilities and expand its global product portfolio by leveraging GL HAKKO’s proprietary glass-lining technologies. This move will provide Standard Engineering Technology access to key international markets including Japan, China, Thailand, the United States, Europe, and Southeast Asia.

The acquisition will be executed in two phases. Phase I involves the subscription of up to 19.19% of the issued and paid-up equity share capital of GL HAKKO for Japanese Yen 1,174 million (approximately ?693 million). Phase II entails the subscription of an additional stake of up to 31.88% within three years from the completion of Phase I, specifically targeted for the year 2028, for Japanese Yen 1,978 million (approximately ?1,167 million). Upon completion of Phase II, Standard Engineering Technology’s aggregate shareholding in the Target Company will increase to 51.07%.

The transaction constitutes a Related Party Transaction as Mr. Yasuyuki Ikeda, Additional Executive Director of Standard Engineering Technology, is interested in the deal. The company stated that the transaction will be undertaken on an arm’s length basis. The investment is subject to the fulfilment of conditions precedent, including receipt of requisite regulatory approvals such as those under the Foreign Exchange and Foreign Trade Act (FEFTA) in Japan.

GL HAKKO Co., Ltd., incorporated on June 17, 1955, reported a turnover of Japanese Yen 3,226 million (approximately ?1,904 million) for the financial year 2025-26. The company specializes in designing and manufacturing glass-lined and specialized process equipment for the pharmaceutical, chemical, and semiconductor-chemical industries. The financial figures provided in the disclosure are as per Japanese GAAP.

Financial Performance of GL HAKKO Co., Ltd.

Standard Engineering Technology will enter into a Shareholders’ Agreement and a Share Subscription Agreement with GL HAKKO and its existing shareholders. The completion of the proposed investment is indicative within 30 days from the date of agreement, subject to the satisfaction of terms and conditions set out in the transaction documents.