Kokobu & Co., Ltd. and Mitsui & Co., Ltd. Agree to Enter into an Equity Alliance.Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. , Japan, Apr 3, 2007 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - Kokobu & Co., Ltd. ("Kokubu"), a leading Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and food wholesaler, and Mitsui Mitsui: see zaibatsu. & Co., Ltd. ("Mitsui"; TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 8031) have agreed in principle to enter into an equity alliance in wholesale businesses of foods and liquor liquor /li·quor/ (lik´er) (li´kwor) pl. liquors, liquo´res [L.] 1. a liquid, especially an aqueous solution containing a medicinal substance. 2. in Hokkaido Hokkaido (hōkī`dō), island (1990 pop. 5,643,515), c.30,130 sq mi (78,040 sq km), N Japan, separated from Honshu island by the Tsugaru Strait and from Sakhalin, Russia, by the Soya Strait. area, Japan. Detailed information is as follows. 1. Background Kokubu, Mitsui Foods Co., Ltd. ("Mitsui Foods"), and Mitsui have been continuing discussions seeking for the optimum business alliance formation among the three companies based on a strategic alliance agreement signed in last April. Parties have reached an agreement where Mitsui shall consolidate its food and liquor wholesale subsidiaries in the Hokkaido area, and then Kokubu shall make an equity participation into such consolidated organization. Through this equity participation Kokubu and its wholesale subsidiaries ("Kokubu Group"), who will have the largest wholesale market share of foods and liquor in Hokkaido, will seek to offer various functions and competitive pricing to customers. 2. Outline and schedule of the equity alliance 1) Hokushuren Co., Ltd. ("Hokushuren"), a foods and liquor wholesale subsidiary of Mitsui, will restructure its capital structure by combining capital reduction and allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of new shares to Mitsui. 2) Mitsui Foods will transfer major part of its businesses of its Hokkaido Branch to Hokushuren by the end of September 2007. 3) Kokubu will purchase 70 percent of Hokushuren shares from Mitsui on October 1, 2007, with the purchase price to be determined later. Kokubu and Mitsui will make every effort to implement this reorganization, together with these two subsidiaries of Mitsui. Kokubu and Mitsui will also seek for further effort to improve the quality of service provided to customers, including business combinations or integration of distribution bases and IT system among Hokushuren and other Kokubu Group companies in Hokkaido area. 3. Outline of Mitsui's food and liquor wholesale subsidiaries in Hokkaido area
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Company Name Hokushuen, Co., Ltd Mitsui Foods Co., Ltd.
Head Office Sapporo, Hokkaido, Chuo-ku, Tokyo, Japan
Japan (Hokkaido Branch:
Sapporo, Hokkaido, Japan)
Representative Yasuyuki Inamura Shinichi Mizutani
Paid-in Capital 1,639 million yen 12,031 million yen
Sales
(FY ended 3/2006) 69.7 billion yen 542.3 billion yen
(Hokkaido Branch:
51.8 billion yen)
Business Wholesale of liquor Wholesale of foods and
and foods beverages
Major Shareholders Mitsui 67.1% Mitsui 99.9%
(As of Sept. 2006) Other 32.9% Other 0.1%
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4. Impact on Mitsui's consolidated financial results The impact of this integration and capital affiliation on Mitsui's consolidated financial results is insignificant. Notice: This press release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission. This press release is published in order to publicly announce specific facts stated above, and does not constitute a solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us. About Mitsui and Co., Ltd. Mitsui and Co., Ltd. (TSE:8031; NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :MITSY) is one of the largest trading houses in the world and is active in a wide range of trading activities, along with the development of energy sources and other natural resources for various industries. These include export, import, domestic and offshore transactions in such industrial materials as steel, non-ferrous metals and chemicals as well as in machinery, electronic and industrial products and lifestyle-related products, including foodstuffs foodstuffs npl → comestibles mpl foodstuffs npl → denrées fpl alimentaires foodstuffs food npl → , textiles and general merchandise. Mitsui is also involved in various businesses related to the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. activities, as well as telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and IT, service businesses and regional development. For more information, please visit www.mitsui.co.jp. Source: Mitsui and Co., Ltd. Contact: Mitsui & Co., Ltd. Corporate Communications Division Telephone: +81-3-3285-7566 Facsimile: +81-3-3285-9819 Investor Relations Division Telephone: +81-3-3285-7910 Facsimile: +81-3-3285-9819 E-Mail : infoTKADZ@mitsui.com Copyright [c] 2007 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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