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Maruishi Holdings to be delisted from TSE 2nd section Sept. 4.

TOKYO, Aug. 3 Kyodo

The Tokyo Stock Exchange said Tuesday it will delist Maruishi Holdings Co. from its Second Section on Sept. 4 because an auditing firm refused to audit financial statements of a Maruishi wholly owned subsidiary allegedly involved in a financial scandal.

The TSE said Maruishi's stock will be placed in the liquidation post from Wednesday through Sept. 3 to call investors' attention to the planned delisting. Trading of the company's shares was suspended following the TSE announcement on Tuesday morning.

If circumstances arise requiring the TSE to delist the stock immediately, the duration in the liquidation post and the day of delisting will be changed accordingly, the bourse said.

The action follows Monday's announcement by Kokusai Daiichi Audit Corp., the auditor of the subsidiary, Maruishi Cycle Industries Ltd., that it will not express its views on the firm's half-year earnings report in the business year through November.

The TSE said it decided to delist the holding company because the refusal by the auditor has created a lack of credibility in the group's financial statements.

A former president of Maruishi Cycle and four others were arrested in June on suspicion of arranging a fictitious capital increase for the struggling Tokyo-based bicycle maker.

Kokusai Daiichi Audit said it could not audit Maruishi Cycle's financial statements as it faced difficulties in collecting information due to the detention of the former president and others, according to Maruishi Holdings.
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Publication:Japan Weekly Monitor
Date:Aug 9, 2004
Words:237
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