Sojitz Corporation


Sojitz to Underwrite New shares Issued through Third-party Allocation of A-type Shares by JAL

Enhancing aviation-related businesses and cooperation with JALUX

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Feb. 29, 2008

Sojitz Corporation has entered into an agreement with Japan Airlines Corporation to underwrite new shares to be issued through allocation of A-type shares, which are planned to be issued by JAL on March 17.

Of the 614,000,000 A-type shares (totaling 153.5 billion yen) to be newly issued by JAL, Sojitz will acquire 60,000,000 shares at a cost of 250 yen per share, totaling 15 billion yen. The shares of preferred stock to be acquired by Sojitz are non-voting, and are entitled to receive 3.00% plus Japanese Yen 12 month TIBOR as a preferred dividend.

Since this capital increase will lead to the strengthening of JAL's financial standing and the company's businesses and performance are expected to stabilize and to enjoy growth potential, Sojitz will also try to further facilitate transactions. In addition, in the area of business with JALUX, in which company Sojitz took a 30% stake in 2007, further development is expected as a result of the enhanced stability and growth potential of JAL.

Sojitz regards JAL as one of its most important main clients, and sees that improvement of JAL's financial standing will enable it to continuously implement the renewal of necessary equipment, leading to further activation of transactions between JAL and Sojitz. In addition to expanding transactions with JALUX and JAL, Sojitz will strengthen related businesses in such manner that the company will, through cooperation with JALUX, try to expand its retail businesses targeting the airport market and airline customers, and also expand its efforts centered on JAL's business foundation, its markets and its commercial rights.  

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