Notice of the Liquidation of Our Shares in Our Equity Method Affiliate Kohmi Kinzoku Co., Ltd.
December 26, 2005
We have decided to sell 65,000 of the 100,000 shares (33.33% of total outstanding) we own in Kohmi Kinzoku Co., Ltd. (President Norinari Hayashi, Capitaliation: ¥15 million, Headquarters: Ota-ku, Tokyo, Business: Non-ferrous metal product manufacturing and sales, Relation to our Company: Distributor of our products), our affiliate held under the equity accounting method, in January 2006. Consequently, Kohmi Kinzoku was excluded from our consolidated accounts.
- Overview of Kohmi Kinzoku Co., Ltd.:
- Sales: ¥5,460 million (October 2004)
Ordinary income: ¥70 million (October 2004)
Net income: ¥39 million (October 2004)
Capitalization: ¥15 million
Shares outstanding: 300,000
Our holdings before the sale: 100,000
Our ownership ratio before the sale: 33.33%
Our holdings after the sale: 35,000
Our ownership ratio after the sale: 14.89%
(Kohmi Kinzoku expects to buy back all of the shares we sell and retain them as treasury stock.)
We expect the sale to have no impact upon our outstanding consolidated earnings projections.