Sumitomo Corp’s board approved selling its 54.17% stake in Madagascar’s Ambatovy nickel project to Ambatovy Mineral Resources Investment Holding Company.
The transaction values the stake at a negative $418 million (≈66.9 billion yen), leading to an expected ¥70 billion loss in the April‑June quarter.
Shares surged over 17% to a record ¥6,840, as investors welcomed the strategic withdrawal from the troubled asset.
Tax effects are expected to cushion profit impact and the loss has already been factored into the earnings outlook.