BAKU, Azerbaijan, November 14. In a distinctive move within the realm of general trading companies, ITOCHU has maintained a steadfast commitment to strategic asset replacement, distinguishing itself from recent trends observed in other companies, Trend reports with reference to the company.
This strategic approach has been a consistent element of ITOCHU's business strategy.
An illustrative example of ITOCHU's proactive stance is the sale of PrimeSource, a move that yielded a substantial cash recovery of approximately ¥110.0 billion, strategically timed to align with business peak considerations. Another instance showcases the company's commitment to cash efficiency, where funds from the sale of the hardwood pulp business (CENIBRA) were reinvested in the softwood pulp business (METSA FIBRE).
While emphasizing the retention of prime businesses with the potential for sustainable profits, ITOCHU maintains vigilance to prevent the hasty sale of businesses solely for short-term financial gains. The company actively monitors Division Companies' activities, ensuring that businesses with growth potential are not sacrificed merely for a temporary boost in financial results through capital gains.
Conversely, ITOCHU recognizes the importance of promoting the sale of businesses that may have reached their peak, even if Division Companies may be reluctant due to profitability. The company remains dedicated to asset replacement that aligns with market dynamics and investment efficiency.
Addressing the sale of CONEXIO Corporation, despite internal preferences to retain the company due to its ties with telecommunication carriers, ITOCHU made the decision to sell in anticipation of industry changes, including expected reductions in agency fees. This decision reflects the company's commitment to achieving better synergy with a buyer poised to navigate evolving industry structures.
ITOCHU pledges to continue its meticulous approach to asset replacement, conducting in-depth analyses of each business to adapt to the dynamic business landscape effectively.
Follow the author on X: @Lyaman_Zeyn