Battery maker Showa Denko is set to sell its underperforming lead-acid operations for a reported 60 billion yen ($540 million).
The Japanese firm sold its interests in the lead-acid battery market to investment firm Sustainable Battery Solutions, which is operated by Sustainable Battery Holdings (whose largest shareholders are the investment fund Advantage Partners and financial services company Tokyo Century), according to news outlet Nikkei Asia.
Lead battery firms CSB Energy Technology and Thai Energy Storage Technology Public Company are part of a wider company split and incorporation of a new operating company called Energy Storage Devices Spin-Off Preparation.
The transaction will be concluded on the condition that SBS obtains the clearances and licenses necessary under the domestic and international competition laws and other laws and regulations.
Showa Denko Materials, the consolidated subsidiary of Showa Denko, shall be the splitting company and new company will be the successor company when the split happens this December.
The moves comes as Showa Denko announced it will record an extraordinary loss of about 30 billion yen ($270 million) for the first half of the year.