November 25, 2020
To All Concerned Parties
Company name
Representative

Contact for inquiries

Mitsubishi Materials Corporation
Naoki Ono, Chief Executive Officer(Securities code: 5711, First Section, Tokyo
Stock Exchange)
Yuji Omura, General Manager, Corporate
Communications Dept.
(Tel: +81-3-5252-5206)

Regarding Signing of Definitive Agreement Concerning Transfer of Shares of Diamet Corporation
Mitsubishi Materials Corporation (hereinafter referred to as the “Company”) hereby announces that the Company,at the meeting of its Board of Directors held today, adopted a formal resolution to transfer (hereinafter referred to asthe “Transfer”) the entire shares of Diamet Corporation (hereinafter referred to as “Diamet”), a consolidated
subsidiary of the Company, to Endeavour Ⅱ United Investment Business Limited Partnership (hereinafter referredto as "EUF-2"), a fund under management of Endeavour United Co., Ltd. (hereinafter referred to as “Endeavour”)
which is an unlimited liability partner of EUF-2 and that the Company signed a definitive agreement with Endeavour
today.The signing of the definitive agreement is pursuant to the announcement on September 29, 2020 by theCompany that the Company had signed a memorandum of understanding with Endeavour to commence detailed
consultations and studies to Transfer.
1. Scope of the Transfer
The entire shares of Diamet held by the Company will be transferred. Accordingly, PM Techno Corporation,Diamet Klang (Malaysia) Sdn., Bhd. and Guangdong Diamet Powder Metallurgy Co., Ltd., which are thesubsidiaries of Diamet and also the consolidated subsidiaries of the Company, will be out of the scope ofconsolidation.
Outline of Diamet
(1)

Name

Diamet Corporation(2)

Location

3-1-1 Koganecho, Higashi-ku, Niigata City, Niigata(3)

Name and title of representative

Fumio Tsurumaki, President Director(4)Business Overview

Production, R&D and Sales for sintered mechanical parts, Oilless
Beariings, Other powder metallurgy parts(5)

Stated capital

4.75 billion Japanese yen(6)Date of establishment

December 1, 2005

(7)

Major
shareholder
shareholding ratio

anditsMitsubishi Materials Corporation: 100%

2.Outline of the transferee(1)

NameEndeavour Ⅱ United Investment Business Limited Partnership(2)

Location(3)

Ground for establishment and others(4)

Date of establishment

September 13, 2018(5)

Total investments

35.1 billion Japanese yen (total amount of investmentcommitments made by partners)6F, Marunouchi 2-chome Building, 2-5-1 Marunouchi, Chiyodaku, Tokyo
Limited liability partnership incorporated under the Limited
Partnership Act for Investment

Company nameLocation(6)

Outline of unlimited liability partner

Name and title ofrepresentative
Business
Overview
Stated capitalEndeavour United Co., Ltd.
6F, Marunouchi 2-chome Building, 2-5-1Marunouchi, Chiyoda-ku, Tokyo
Tomohiko Mimura, CEO
Private equity fund management
80 million Japanese yen* The transferee and the Company have no capital, personal or transactional relationships and the transferee or the Company donot constitute a related party of each other.

3. Schedule of the Transfer
November 25, 2020 ( date of this announcement) : Finalizing of the definitive agreement
December 4,2020 (expected) : Closing
4. Impact on the Company’s financial results
Regarding the Transfer, the Company is expected to record an extraordinary loss of approximately 21.9 billion
Japanese yen as a provision for loss on business restructuring for the second quarter of the fiscal year ending March
31, 2021. The impact of the Transfer on the Company’s financial results has been factored in the forecast of annual
consolidated earnings in the “Notice of Revisions to Earnings Forecasts” announced on September 29, 2020.

2