Information of Basic Agreement Conclusion concerning Transfer of Nichimen's Steel Products Business to Sumitomo
Dec. 11, 2002
Nichimen Corporation
Sumitomo Corporation
Information of Basic Agreement Conclusion concerning Transfer of Nichimen's Steel Products Business to Sumitomo
On December 5, 2002, Sumitomo Corporation (hereinafter Sumitomo, President and CEO: Motoyuki Oka) and Nichimen Corporation (hereinafter Nichimen, President: Toru Hambayashi) reached a basic agreement whereby Nichimen would transfer its steel products businesses to Sumitomo targeting as early as the beginning of July, 2003.
Nichimen aims at rebuilding its business portfolio under its medium term management plan “NP2002” and advances concentrating management resources and operations in its strategic business fields by pursuing “selection and concentration”. In line with this strategy, Nichimen decided to transfer its steel products businesses, such as stainless steel, specialty steel, steel sheet for automobile use, other flat rolled steel products, and coated steel sheet businesses etc., to Sumitomo.
Sumitomo, placing steel business as one of its core businesses, plans to further strengthen and expand it through committing its resources to the businesses to be transferred from Nichimen. Earlier this year, Sumitomo had purchased Nomura Trading's steel export businesses and expanded its steel sheet activities in Asia.
The transfer of Nichimen's steel products businesses will, Sumitomo expects, allow an even greater enlargement of its base of business and enhance its position in this field.
The price, the payment manner and the method of business transfer are yet to be determined.
Inquiries
[Nichimen Corporation]
Yoshiki Furuya
Takashi Ochi
Public relations & investor relations Dept.
Tel:81-3-5446-1062
[Sumitomo Corporation]
Keiji Nakajima
Masahiko Ueda
Corporate Communications Dept.
Tel:81-3-5166-3096
December 5, 2002
Company Name : Nichimen Corporation (Security Code 8004)
Representative : Toru Hambayashi, President
Media Contact : Yoshiki Furuya, Manager
Public Relations & Investor Relations Dept.
Phone : 81-3-5446-1062
Information of Basic Agreement Conclusion concerning Transfer of Steel Products Business
Nichimen Corporation (Nichimen) reached a basic agreement with Sumitomo Corporation today to transfer its steel products businesses to Sumitomo Corporation by the beginning of July 2003.
1.Reason for Business Transfer
Nichimen aims at rebuilding its business portfolio under its medium term management plan "NP2002" and advances concentrating management resources and operations in its strategic business fields by pursuing "selection and concentration".
In line with this strategy, Nichimen decided to transfer its steel products businesses to Sumitomo Corporation.
2.Contents of Business Transfer
(1) Business to be transferred by Nichimen
Domestic and overseas steel products businesses at Nichimen, its subsidiaries and overseas offices.
Steel products traded: stainless steel, specialty steel, steel sheet for automobile use, other flat rolled steel products, and coated steel sheet etc.
(2) Business results for FY2001 (ended March 2002) of transferred business
(Millions of Yen)
Steel products |
Nichimen |
Ratio |
|
Net sales | 94,870 | 2,055,240 | 4.6% |
Gross trading profit | 6,615 | 126,552 | 5.2% |
(Millions of Yen)
Assets (book value) | Liabilities (book value) | ||
Current assets | 33,204 | Current liabilities | 16,390 |
Fixed assets | 9,983 | Long-term liabilities | 158 |
Debt etc. | 26,639 | ||
Total | 43,187 | Total | 43,187 |
(4)Transfer price and settlement method
The transfer price and settlement method will be informed as soon as decided.
(5)Method of business transfer
The method of business transfer will be informed as soon as decided.
3.About Sumitomo Corporation (transferee)
(1)Company name | Sumitomo Corporation |
(2)Main business | General Trading Company |
(3)Date of incorporation | December 24, 1919 |
(4)Location of headquarters | 8-11, Harumi 1-chome, Chuo-ku, Tokyo |
(5)Representative | Motoyuki Oka, President |
(6)Paid-in capital | 169,4 billion Yen(as of March 31, 2002) |
(7)Number of employees | 4,829 people (as of March 31, 2002) |
(8)
Main shareholders and shareholdings |
Sumitomo Life Insurance Co. 4.87% |
4.Schedule
December 5, 2002
Corporate resolution for conclusion of the basic agreement
March 2003
Corporate resolution for the business transfer agreement (planned)
Beg. of July, 2003
Business transfer (planned)
5.Outlook of performance
This business transfer is scheduled to be executed for the fiscal year ending March 31, 2004, therefore there have been no changes in the outlook announced.
[For reference]
Outlook for current fiscal year ending March 31, 2003
Year ending March |
|
Net Sales | 1,900 billion Yen |
Operating income | 27 billion Yen |
Recurring profit | 20 billion Yen |
Net income | 7 billion Yen |
(Non-consolidated)
Year ending March |
|
Net Sales | 1,370 billion Yen |
Operating income | 14 billion Yen |
Recurring profit | 10 billion Yen |
Net income | 3.5 billion Yen |
Dividends | Undecided |
(end)
The original and official version of this notice is written in Japanese. In case of any discrepancies between this notice and the original, the Japanese version shall govern.