Nissho Iwai Alconix Corporation is Undergoing an MBO with a View to Becoming Number One in Sales of Non-Ferrous Metal Products.
Mar. 9, 2001
Nissho Iwai Corporation has decided to let its wholly owned subsidiary, Nissho Iwai Alconix Corporation (NIA), undergo an MBO by the end of Mach 2001 to make it a separate independent firm.
With increasing sales of newest high-technology products of high added value, such as electronics and other materials, in the non-ferrous metals business, NIA, as a separate and independent firm after the MBO, which is strong in this business as well as in the general non-ferrous metals business, will likely manage its business operations with a more flexible and agile manner of making business decisions so as to become number one in the this business area.
All the issued NIA stocks will be sold to the MBO Fund "FBF2000" managed by Fuji Capital Management Co., Ltd. of the Fuji Bank Group. After the MBO is completed, the stocks will be offered to interested third parties, which include NIA's current management and employees. Nissho Iwai will also take out about 35 percent of the newly dependent firm's stocks.
In executing this MBO, Nissho Iwai will have the promissory notes received securitized for lower procurement costs and more solid financial position.
Nissho Iwai has been reorganizing its business portfolio management without prejudice to any particular business group to make each business group stronger. This is the first time to choose to use MBO as part of its portfolio management reorganization. What is behind this choice is, among others, that NIA enjoys the largest sales among the non-ferrous metals traders in Japan, that it has solid business management, and that the MBO will help strengthen its financial structure. In years to come,NIA will work hard to further expand its business and profits and thereby be eligible for an IPO in three to five years.