TIDMMBC
RNS Number : 4238F
Mitsubishi Corporation
20 February 2015
(Translation of report filed with the Tokyo Stock Exchange on
February 20, 2015)
Notice Regarding Transfer of Shares in Consolidated
Subsidiaries
Mitsubishi Corporation (MC) hereby announces that its shares
(70% of all outstanding stock) held in its consolidated subsidiary
Alpac Forest Products Inc. (AFPI) and its shares (100% of all
outstanding stock) held in Alpac Pulp Sales Inc. (APSI) will be
transferred to Hokuetsu Kishu Paper Co., Ltd. (Hokuetsu Kishu) The
decision was made at the company's Board of Directors meeting on
February 20, 2015.
1. Reasons for Share Transfer
AFPI manufactures pulp from a broad area covering 6.4 million
hectares of high-quality forest granted by the provincial
government of Alberta, Canada. Originally, MC partnered with Oji
Holdings Corporation and established AFPI in March 1998, to provide
a stable supply of pulp and paper raw materials to paper companies
in Japan. However, the demand structure has been changing in recent
years, with most sales destinations now concentrated in North
America which has ultimately become a difficult situation for MC to
exert its synergy effect. In line with the New Strategic Direction,
MC's corporate strategy released in 2013, MC has since been
accelerating divestments of its assets. In that context, with
consideration of the business environment surrounding AFPI, as well
as the direction of AFPI's business, MC has assessed that a
transfer of AFPI shares to Hokuetsu Kishu, where trends reveal an
expansion in its upstream activities, would be the most appropriate
decision. Likewise, shares held in APSI, which undertakes sales
activities for pulp produced by AFPI, will also be transferred to
Hokuetsu Kishu for the aforementioned reasons.
2. Outlines of Subsidiaries to be transferred
n Alpac Forest Products Inc.
(1) Company Name Alpac Forest Products Inc.
------ ------------------- ------------------------------------------------------
(2) Head Office Boyle, Alberta, Canada
------ ------------------- ------------------------------------------------------
(3) Representative Osamu Terao, Chairman, President,
CEO & CFO
------ ------------------- ------------------------------------------------------
(4) Main Business Pulp manufacturing
------ ------------------- ------------------------------------------------------
(5) Capital CAD 285 million
------ ------------------- ------------------------------------------------------
(6) Date Established March 1998
------ ------------------- ------------------------------------------------------
(7) Main Shareholders Mitsubishi Corporation, 70%; Oji
and Share Holdings Corporation, 30%
Ownership
Ratio
------ ------------------- ------------------------------------------------------
(8) Relationship Capital Listed company holds 70%
Between Listed of voting rights in subsidiary.
Company and
Subsidiary
------ ------------------- --------------- -------------------------------------
Personnel Listed company has dispatched
one executive director and
three non-executive directors
to serve at subsidiary.
----- ------------------- --------------- -------------------------------------
Business Listed company purchases
Transactions and sells pulp manufactured
by subsidiary.
----- ------------------- --------------- -------------------------------------
(9) Subsidiary's consolidated business performance
and consolidated financial status for the
three most recent years (IFRS). Unit: 1,000
Canadian Dollars (CAD)
Reference: 1 CAD = 95.9 yen, as of February
18, 2015
* In keeping with IFRS requirements, notation
for consolidated ordinary income is not included.
------ ---------------------------------------------------------------------------
Accouting Period (For December December December
Fiscal Year Ended) 2011 2012 2013
-------------------------------------------- ----------- ----------- -----------
Consolidated Net
Assets 520,388 537,263 518,936
------------------------------------------- ----------- ----------- -----------
Consolidated Total
Assets 894,102 888,516 866,279
------------------------------------------- ----------- ----------- -----------
Consolidated Net
Assets Per Share
(CAD) 27.39 28.28 27.31
------------------------------------------- ----------- ----------- -----------
Consolidated Sales 368,053 368,317 367,520
------------------------------------------- ----------- ----------- -----------
Operating Profit 34,171 26,749 32,774
------------------------------------------- ----------- ----------- -----------
Consolidated Net
Income 22,034 17,620 20,779
------------------------------------------- ----------- ----------- -----------
Condolidated Net
Income Per Share
(CAD) 1.16 0.93 1.09
------------------------------------------- ----------- ----------- -----------
Dividend Per Share
(CAD) 1.43 0 2.09
------------------------------------------- ----------- ----------- -----------
Note: Operating profit as recorded in the company's financial
statements (IFRS).
n Alpac Pulp Sales Inc.
(1) Company Name Alpac Pulp Sales Inc.
------ -------------------- ------------------------------------------------------
(2) Head Office Vancouver, British Columbia, Canada
------ -------------------- ------------------------------------------------------
(3) Representative Nobuyuki Watanabe, President
------ -------------------- ------------------------------------------------------
(4) Main Business Pulp sales
------ -------------------- ------------------------------------------------------
(5) Capital CAD 3.5 million
------ -------------------- ------------------------------------------------------
(6) Date Established November 2002
------ -------------------- ------------------------------------------------------
(7) Major Shareholders Mitsubishi Corporation, 100%
and Share
Ownership
Ratio
------ -------------------- ------------------------------------------------------
(8) Relationship Capital Listed company holds 100%
Between Listed of voting rights in subsidiary.
Company and
Subsidiary
------ -------------------- --------------- -------------------------------------
Personnel Listed company has dispatched
two executive directors
and one non-executive director
to serve at subsidiary.
----- -------------------- --------------- -------------------------------------
Business Listed company purchases
Transactions pulp from subsidiary.
----- -------------------- --------------- -------------------------------------
(9) Subsidiary's consolidated business performance
and consolidated financial status for the
three most recent years (IFRS). Unit: 1000
Canadian Dollars
Reference: 1 CAD = 95.9 yen, as of February
18, 2015
* In keeping with IFRS requirements, notation
for ordinary income is not included.
------ ----------------------------------------------------------------------------
Accounting Period (For December December December
Fiscal Year Ended) 2011 2012 2013
--------------------------------------------- ----------- ----------- -----------
Net Assets 43,453 33,196 34,725
-------------------------------------------- ----------- ----------- -----------
Total Assets 71,833 68,101 73,523
-------------------------------------------- ----------- ----------- -----------
Net Assets Per Share
(CAD) 24.83 18.97 19.84
-------------------------------------------- ----------- ----------- -----------
Sales 405,112 393,728 420,192
-------------------------------------------- ----------- ----------- -----------
Net Income 2,590 2,332 3,861
-------------------------------------------- ----------- ----------- -----------
Net Income Per Share
(CAD) 1.48 1.33 2.21
-------------------------------------------- ----------- ----------- -----------
Dividend Per Share
(CAD) 7.32 7.19 1.33
-------------------------------------------- ----------- ----------- -----------
3. Outline of Purchaser (as of March 31, 2014)
(1) Company Name Hokuetsu Kishu Paper Co., Ltd.
----- ------------------- -------------------------------------------------
(2) Head Office 3-5-1 Nishizao, Nagaoka-shi, Niigata,
Japan
----- ------------------- -------------------------------------------------
(3) Representative Sekio Kishimoto, President and
CEO
----- ------------------- -------------------------------------------------
(4) Main Business Manufacture, processing and sale
of paper, cardboard and other products.
----- ------------------- -------------------------------------------------
(5) Capital 42,020 million yen
----- ------------------- -------------------------------------------------
(6) Date Established April 27, 1907
----- ------------------- -------------------------------------------------
(7) Consolidated 161,247 million yen
Net Assets
----- ------------------- -------------------------------------------------
(8) Consolidated 350,769 million yen
Total Assets
----- ------------------- -------------------------------------------------
(9) Major Shareholders Mitsubishi Corporation, 17.50%;
and Share The Master Trust Bank of Japan,
Ownership Ltd. (Account in Trust), 7.44%;
Ration Japan Trustee Services Bank, Ltd.
(Account in Trust) , 3.85% (as
of September 30, 2014)
----- ------------------- -------------------------------------------------
(10) Releationship Capital Listed company holds 19.39%
Between Listed of voting rights in purchaser
Company and (as of September 30, 2014).
Purchaser
----- ------------------- -------------- ---------------------------------
Personnel Listed company has dispatched
two employees to serve at
purchasing company.
----- ------------------- -------------- ---------------------------------
Business Listed company sells raw
Transactions materials to purchasing
company and buys and sells
products of purchasing company.
-------------- ---------------------------------
Status As a major shareholder of
of Related the purchaser, listed company
Parties is considered a related
party.
----- ------------------- -------------- ---------------------------------
4. Details regarding value of shares and number of shares held before and after transfer
n Alpac Forest Products Inc.
(1) Number of 13,300,000
Shares Held (Total Number of Voting Rights:
Before Transfer 13,300,000)
(Voting Rights Ratio: 70.0%)
---- ----------------- ------------------------------------
(2) Number of 13,300,000
Shares To (Total Number of Voting Rights:
Be Transferred 13,300,000)
---- ----------------- ------------------------------------
(3) Value of The value of the shares planned
Shares To for transfer is under negotiation.
Be Transferred Disclosure will be made following
the final decision.
---- ----------------- ------------------------------------
(4) Number of 0
Shares Held (Total Number of Voting Rights:
After Transfer 0)
(Voting Rights Ratio: 0%)
---- ----------------- ------------------------------------
n Alpac Pulp Sales Inc.
(1) Number of 1,750,001
Shares Held (Total Number of Voting Rights:
Before Transfer 1,750,001)
(Voting Rights Ratio: 100.0%)
---- ----------------- ------------------------------------
(2) Number of 1,750,001
Shares To (Total Number of Voting Rights:
Be Transferred 1,750,001)
---- ----------------- ------------------------------------
(3) Value of The value of the shares planned
Shares To for transfer is under negotiation.
Be Transferred Disclosure will be made following
the final decision.
---- ----------------- ------------------------------------
(4) Number of 0
Shares Held (Total Number of Voting Rights:
After Transfer 0)
(Voting Rights Ration: 0%)
---- ----------------- ------------------------------------
5. Schedule
(1) Date of Meeting February 20, 2015
for the Board
of Directors
---- ------------------ ----------------------------------
(2) Date of Execution Disclosure will be made following
of Share the final decision.
Transfer
Agreement
---- ------------------ ----------------------------------
(3) Date of Transfer Disclosure will be made following
of Shares the final decision.
---- ------------------ ----------------------------------
6. Business Outlook
The current transaction is expected to have negligible impact on
MC's consolidated performance.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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