Establishment of ITX Corporation
Feb. 7, 2000
To expand its foundation in the fast-growing information business, Nissho Iwai Corporation has decided to reform its corporate structure by spinning off its Information Business Division. The Company will begin operations from April 1st , receiving investments from various strategic partners.
The name of the new company is ITX Corporation.
The spin off of the Information Business Division marks the first step made by Nissho Iwai to accomplish one of its major reforming policies in its plan to become a holding company.
The new company will have a fast decision making process and ability to manage prompt action, although Nissho Iwai will maintain effective management control. It will also invite participation from strategic partners to enable aggressive investments in order to continue being a major player in the information business .
|Name||ITX Kabusiki Kaisha (Japanese)
ITX Corporation (English)
|Shareholders' Equity||approx. Yen 20 billion|
|CEO||Shintaro Hirata (Nissho Iwai Executive Officer, General Manager, Information Business Division)|
|Address||4-5, Akasaka 2-chome, Minato-ku, Tokyo (Nissho Iwai headquarters)|
|Number of Employees (including consolidated subsidiaries)||1,800|
|Main Group Companies and Investors||
-Nissho Electronics Corporation
Nissho iwai files the following information for Tokyo Stock Exchange
February 7, 2000
To whom it may concern,
Nissho Iwai Corporation
2-4-5 Akasaka, Minato-ku,
Code No. 8063
Takayama TEL (06) 6209-2056
On the Transfer of Nissho Iwai's Information Business Division
On February 7, 2000, the Board of Directors of Nissho Iwai approved the transfer of its Information Business Division operations to ITX Corporation. Details are outlined below.
1.Purpose of Transfer
To achieve further growth in the information industry, Nissho Iwai has decided to transfer the operations of its Information Business Division to ITX Corporation, a wholly owned subsidiary.
By transferring the division, Nissho Iwai will effectively spin off its information business operations. An accelerated decision-making process will increase the ability of the Nissho Iwai Group to respond flexibly and make aggressive investments in the information industry, which is characterized by rapid change and the need for a sustained commitment of corporate resources.
2.Details of Transfer
a.Business division to be transferred
Information Business Division
Operating results of the Information Business Division during fiscal year ended March 31, 1999, were as follows:
Net sales Yen 218,407 million
Recurring profit Yen 369 million
c.Breakdown of assets and liabilities to be transferred
Details of the assets and liabilities to be transferred will be decided through separate deliberations.
For reference, the balance of assets and liabilities (book value) of the Information Business Division as of September 30, 1999, was as follows.
Current Assets Yen 30,969 million
Fixed Assets Yen 57,879 million
Total Liabilities Yen 29,346 million
d.Method for valuing and settling transfer
The amount of assets and liabilities will be determined based on fair market value as of the transfer date. Settlement will be made on a cash basis.
3.Timeline for Transfer
February 7, 2000 Meeting of the Board of Directors (transfer approved)
February 10, 2000 Transfer agreement reached (planned)
March 31, 2000 Date of transfer (planned)
4.Details of ITX Corporation
Purchase, sale, import and export of information-related products; information processing and distribution; telecommunications; television and radio broadcasting, cable services and programming
c.Date of establishment
4-5, Akasaka 2-chome, Minato-ku, Tokyo, Japan
e.Chief executive officer
100% owned by Nissho Iwai
Nissho Iwai forecasts nonconsolidated results for the fiscal year ending March 31, 2000, as follows:
Net sales Yen 6,500 billion
Recurring profits Yen 21.5 billion
Net income Yen 6.0 billion
The transfer will have no impact on results
For the fiscal year ending March 31, 2001, Nissho Iwai estimates that the transfer will have the following impact on nonconsolidated results:
Net sales Yen 171.9 billion
Recurring profit Yen 1.8 billion
We expect the transfer to have no impact on consolidated results.
|Note:||The above statement are translated from Japanese into English for the convenience of the readers outside Japan.|