On December 1, Iwatani purchased the shares of Cosmo Energy HD (Cosmo HD) which has been in a partnership relation in the hydrogen energy field for 105.3 billion yen from City Index Eleventh and others belonging to the investment brokerage firm under the former Murakami Fund. With the purchase Iwatani will be top shareholder at the rate of 19.93% of Cosmo HD.

In Cosmo HD, there has been some conflict between the shareholders and the management concerning the corporate operation policy, but the acquisition by Iwatani at this time will lead to a solution.
As has been reported before, Iwatani and Cosmo HD have so far been in a time-honored business relation in the field of construction of LPG and LNG-related facilities. Most recently the two companies have been deepening their collaborative relations such as establishing a limited liability company in the hydrogen energy field.

Considering the possibility of synergy effects by utilizing COSMO HD’s engineering power to develop a large-scaled hydrogen supply chain, Iwatani responded to accept the proposed purchase of the shares.

The acquired number of shares is 1,740,525 which makes Iwatani’s shareholding ratio rise to 19.93% from 0.07%. The fund amounts to 105.3 billion yen and is borrowed from Mitsubishi UFJ.
The repayment deadline will be one year later from the date of contract. Unless there is any cease-and-desist order via examinations by the Fair Trade Commission after the acquisition, Iwatani is planning to acquire additionally 250,000 shares from City Index Eleventh.