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Itochu makes 52.1 bil. yen from affiliate share sale.

TOKYO, Dec. 14 Kyodo Itochu Corp. said Tuesday it made 52.1 billion yen from selling part of affiliate Itochu Techno-Science Corp., which was listed on the First Section of the Tokyo Stock Exchange (TSE) the same day.

The money will be used to cover part of an extraordinary loss of 395 billion yen that Itochu anticipates for fiscal 1999 for the disposal of unprofitable property holdings, the major trading house said.

Itochu revised its projected group net loss for fiscal 1999, which ends next March 31, to 110 billion yen from 130 billion yen.

Itochu Techno-Science, which sells computer network systems, went unquoted on the TSE on Tuesday and closed its first day of trading at a bid-only 50,600 yen, compared with its face value of 50 yen.

The parent company sold the stock to underwriting securities companies at a subscription price of 22,000 yen per share.

Meanwhile, the TSE decided to restrict trading in Itochu Techno-Science in order to ease excessive demand for the stock.

The restrictions, which will take effect until the stock fetches its first quote, are composed of a ban on trading by securities houses for their own accounts and the collection of payments from investors on the day orders are placed.

The exchange last imposed such restrictions when it listed Nippon Broadcasting System Inc. in December 1996.
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Comment:Itochu makes 52.1 bil. yen from affiliate share sale.
Publication:Japan Weekly Monitor
Geographic Code:9JAPA
Date:Dec 20, 1999
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