Standard Engineering Technology Approves Phased Strategic Investment in Japanese Manufacturer GL HAKKO Co. Ltd.

Standard Engineering Technology Approves Phased Strategic Investment in Japanese Manufacturer GL HAKKO Co. Ltd.​

Standard Engineering Technology Limited has announced a strategic investment into M/s. GL HAKKO Co., Ltd., a company based in Japan specializing in specialized process equipment for industrial use. The acquisition is structured in two phases, with the goal of significantly expanding Standard Engineering Technology’s technological capabilities and global product portfolio.

The planned investment involves subscribing to equity shares in the Target Company over two phases. Phase I entails acquiring up to 19.19% of the issued and paid-up equity share capital of M/s. GL HAKKO Co., Ltd. This initial phase requires a cash consideration of Japanese Yen 1,174 Million (Approx INR 693 Million).

Phase II is designed as an extension of the investment, permitting Standard Engineering Technology to subscribe an additional stake of up to 31.88% in GL HAKKO Co., Ltd. This second phase is scheduled within three years from the completion of Phase I and remains subject to regulatory approvals and fulfillment of agreed conditions precedent.

Upon the successful conclusion of both phases, Standard Engineering Technology's aggregate shareholding in M/s. GL HAKKO Co., Ltd. would increase up to 51.07%. The company intends to formalize this partnership through a Shareholders' Agreement (SHA) and a Share Subscription Agreement (SSA).

Target Company Background and Investment Details​

M/s. GL HAKKO Co., Ltd., established on June 17, 1955, in Japan, is dedicated to designing and manufacturing glass-lined and specialized process equipment for the pharmaceutical, chemical, and semiconductor-chemical industries. The industry segment into which the target entity belongs is Process Engineering Equipment.

The investment is noted as a Related Party Transaction, with Mr. Yasuyuki Ikeda, Additional Executive Director of the Company, indicating interest in the transaction. Despite this connection, the proposed acquisition is intended to be undertaken on an arm's length basis, and no other interests of the Promoter/Promoter Group/Group Companies have been identified within the Target Company.

The strategic rationale behind the acquisition is clearly defined: leveraging GL HAKKO’s proprietary glass-lining technologies, including Shell and Tube Glass-Lining, Conductivity Glass-Lined, MIZ for semiconductor-grade chemical reactors, and High-Temperature Glass-Lining Technology, in order to strengthen Standard Engineering Technology's technological capabilities and expand its global product portfolio.

The financial performance of GL HAKKO Co., Ltd. over the last three reported financial years is detailed below:


The acquisition process is currently subject to obtaining approval under the Foreign Exchange and Foreign Trade Act (FEFTA) in Japan and other necessary regulatory approvals. The indicative time period for completing Phase I is within 30 days from the date of agreement, dependent on fulfilling conditions as stipulated in the SSA.

CHOLAFIN Stock Price Movement​

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