Asahi Kasei Share Prices Hit 25 Years High after Highly Appreciated Acquisition


Published Date : Mar 11, 2015

As per reports, the week started with good news for Asahi Kasei, whose share prices reached about 25 years high. Industry experts suggest that the recently made announcement by the Japanese manufacturer about an acquisition worth US$2.2 billion might have sparked the rally. However, this should not be considered as the only factor driving the share prices for the Jap chemical manufacturer. 

At one point the company’s share prices was trading at the range of 200 yen or US$1.64, which was roughly one-fifth of what it has recorded at present. It took almost 25 years for Asahi Kasei to make a comeback. The company transformed its earning structure to be compatible with the incumbent needs of time that paved the way for it registering a huge success. 

Toshio Asano, the president of Asahi Kasei announced that the company is acquiring the United States based Polypore International, an industry leading manufacturer of lithium-ion battery separators that are mainly used in the automobile industry. The announcement was made at a press conference held on February 23rd. He said in the conference that the company has been focusing on expanding its operations to the environment and energy sector and that the acquisition would help the company to venture in the sector and grow further. 

Shigeki Okazaki from Nomura Securities said that the move was worthy of being appreciated, since many in the market judge the decision of acquisition to involve comparatively low risk. After Asahi Kasei made the announcement, its share prices hit a 25 years high of 1,248 yen the very next day. The bandwagon was propelled by investors who heartily welcomed the acquisition. Industry is expecting path breaking records from the acquisition.