Concerning the article in the March 2nd Edition of the Nihon Keizai Shimbun
Mar. 3, 2003
TOKYO(March 3, 2003)--An article appeared in the March 2nd edition of the Nihon Keizai Shimbun pertaining to the size of an investment by Lehman Brothers Holdings Inc. in the new holding company to be established jointly by Nissho Iwai and Nichimen Corporation (Nissho Iwai-Nichimen Holdings Corporation). The article, entitled Lehman to Cut Planned Stake In Nissho Iwai-Nichimen By 80 Percent, contained some errors. We hereinafter explain the current situation.
|1.||Lehman Brothers (hereafter called Lehman) have proposed that they would invest in preferred stocks and consider the purchase of convertible bonds (hereafter abbreviated as CBs) worth up to 50 billion yen.|
|2.||In response to such a proposal, Nichimen Corporation and Nissho Iwai Corporation are considering to have the new holding company issue preferred stocks worth up to 10 billion yen and CBs worth up to 50 billion yen. The companies are currently at the stage of working out the terms and conditions with Lehman.|
|3.||Nissho Iwai Corporation has not been informed of any change in Lehman's policy.|
In conjunction with the above, the equity financing and business plan of the new joint holding company are as mentioned in the related reference material released on January 29.
|1)||Preferred stocks and CBs are considered in a segregated manner. (The following are quotations from the released materials:)
- Large-scale equity financing
●Over 200 billion yen equity financing by issuing common stocks and preferred stocks.
●A capital reinforcement plan through CB subscription will be added.
|2)||However, the business plan conservatively includes a capital increase of 200 billion yen only, and does not incorporate an additional capital reinforcement plan through CB subscription.|
For details, please refer to page 5 (slide 9/25) of 'About Joint Holding Company'