2009
1.22
Notification of Transfer of Equity Method Affiliate
Nippon Television Network Corporation (NTV) has announced the acquisition of a portion of shares of NIKKATSU Corporation from Index Holdings. Details are as follows:
1. Reason for Acquisition of Shares
NIKKATSU Corporation (hereinafter referred to as NIKKATSU) is involved in the full value chain of the movie business which includes planning, production, acquisition, distribution, promotion, box-office and packaging, as well as expanding into the satellite business.
NTV has had business dealings with NIKKATSU in the audio-visual production field, and in recent years, NIKKATSU was in charge of the production of the movie series DEATH NOTE, for which NTV was the head organizer and highly appraised the production ability of NIKKATSU. Moreover, both NIKKATSU and NTV were cooperative organizers for the planned March release of movie YATTERMAN.
As our movie business becomes focused and well-positioned, it is necessary to fortify our future cooperation with NIKKATSU. In terms of the audio-visual content field, a high-quality content production synergy effect can be expected. For these reasons, NTV has, as a result of discussions, agreed to acquire 2,403,630 shares (34% ownership) of NIKKATSU from Index Holdings.
2. Overview of NIKKATSU Corporation
| (1) Company name | NIKKATSU Corporation |
| (2) Representative | President: Naoki Sato |
| (3) Address | 3-28-12 Hongo, Bunkyo-ku, Tokyo |
| (4) Date of establishment | September 10, 1912 |
| (5) Principal businesses | 1.Planning, production and distribution of movies 2.Planning, production, sales and rental of video software 3.Licensing of broadcast rights of audio-visual products 4.Planning, production and sales of merchandising products 5.Theater management 6.Broadcast business utilizing communications satellite 7.Production contracts of audio-visual products, studio and studio equipment rentals 8.Management of performers and training institute for video engineers/technicians |
| (6) Fiscal year end | July 31 |
| (7) Number of employees | 278 employees (as of September 30, 2008) |
| (8) Main offices | Tokyo, Osaka, Fukuoka |
| (9) Capital | 3,534,750,000 yen |
| (10) Outstanding shares | 7,069,500 shares |
| (11) Major shareholders |
| Company name | Number of shares held | Percentage of |
| Index Holdings | 5,025,700 | 71.08% |
| SKY Perfect JSAT Corporation | 1,185,500 | 16.76% |
(12) Current business performance of recent fiscal year (unit: millions of yen)
|
| July 2006 | July 2007 | July 2008 |
| Net sales | 5776 | 12,616 | 12,486 |
| Operating income | 198 | 404 | 46 |
| Net income | 202 | 421 | 119 |
| Current net income | 182 | 576 | (879) |
| Total assets | 10,957 | 11,142 | 10,269 |
| Net assets | 7,558 | 8,111 | 7,205 |
*Due to a change in the business year, figures for July 2006 represent a 5-month period.
3. Overview of Index Holdings
| (1) Company name | Index Holdings |
| (2) Representative | Chairman and President: Masami Ochiai |
| (3) Address | Carrot Tower, 4-1-1 Taishido, Setagaya-ku, Tokyo |
| (4) Date of establishment | September 1, 1995 |
| (5) Principal businesses | Mobile and mobile solutions, entertainment, commerce and publication |
| (6) Relationships to NTV | Capital relationships: yes NTV holds 8,810 shares (0.37% ownership) of Index Holdings. (as of August 31, 2008) Personnel relationships: none Transaction relationships: none |
4. Acquisition of Shares and Ratio of Ownership of Shares Before and After Acquisition
| (1) Number of shares prior to acquisition | 0 shares (ownership percentage 0.00%) |
| (2) Number of shares to be acquired | 2,403,630 shares (acquisition value 2,391,611,850 yen) (995 yen per share) |
| (3) Remaining shares after acquisition | 2,403,630 shares (ownership percentage 34.00%) |
5. Schedule
| January 22, 2009 | Contract signed for transfer of shares |
| January 23, 2009 | Execution date for transfer of shares |
6. Forecast
Any impact this transfer may have on consolidated and non-consolidated results in March 2009 is expected to be minimal.
