Narumi China Corp., a wholly owned ceramics unit of Sumitomo Metal Industries Ltd., said Tuesday it has reached an agreement with the parent firm to conduct a management buyout of Narumi next month in partnership with an investment fund of China’s Citic group.

The upscale ceramics maker believes it can better focus on promising areas of business activities after becoming independent from the parent company, which is now concentrating resources on its steel operations.

Narumi’s plans call for entering the glass tableware business pushing into the markets of China, India and other countries with the aim of going public within three to five years.

The Japanese company will form an alliance with Citic Capital Partners Ltd., a state-run Chinese investment fund, which possesses extensive business ties in China and other parts of Asia.

Narumi China’s management and Citic Capital will purchase 90 percent of the Japanese firm’s outstanding shares, of which the Narumi managers are expected to take a stake of 10 percent to 15 percent.

The purchase price is not disclosed.

The remaining 10 percent will be held by Sumitomo Metal for another two years.

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