Credit Saison to make real estate firm Atrium wholly owned subsidiary.TOKYO, June 17 Kyodo Credit Saison Co. concluded Wednesday an agreement to turn struggling real estate subsidiary Atrium Co. into a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. via a stock swap to restructure part of its business which was hit hard by the global financial crisis, the two companies said. The Tokyo-based Atrium will be delisted from the First Section of the Tokyo Stock Exchange Tokyo Stock Exchange Main stock market of Japan, located in Tokyo. It opened in 1878 to provide a market for the trading of government bonds newly issued to former samurai. on July 28 and become a wholly owned subsidiary of Credit Saison, a major credit card issuer, effective Aug. 1. Under the deal, each Atrium share will be exchanged for 0.13 share in Credit Saison. ''Atrium anticipates that becoming a wholly owned subsidiary of Credit Saison will enable it to restructure its business as quickly as possible and put its business activities on course for stability, while receiving credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing from its parent company, Credit Saison,'' said a statement issued by the two companies. For fiscal 2008 that ended March 31, Credit Saison said it posted a group net loss of 55.51 billion yen due to extraordinary losses in connection with restructuring by Atrium. The statement said Atrium had excess liabilities of an estimated 54.40 billion yen on a consolidated basis in the fiscal year ended in February. |
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