Notice Regarding Sale of Investment Securities
2004-01-28
Tomen Corporation announced today that it will sell part of its investment securities in Eurus Energy Holding Corporation (Eurus Energy), an affiliatedcompany of Tomen, to the Tokyo Electric Power Company, Incorporated (TEPCO).
Outline of the transaction is as follows.
| 1. | Transaction details |
| (1)Name of investment securities: stock of Eurus Energy Holding Corporation |
| (2)Number of shares to sell: 1,235 shares |
|
| 2. | Buyer |
| (1)Company name: Tokyo Electric Power Company, Incorporated |
| (2)Representative: Tsunehisa Katsumata, President |
| (3)Head office: 1-3, Uchisaiwai-cho 1-chome, Chiyoda-ku, Tokyo |
| (4)Major business: electric utility |
|
| 3. | Date of transaction |
| March 30, 2004 |
|
| 4. | Reason for the sale |
| Tomen decided to sell part of its investment securities in Eurus Energy to TEPCO to speed up the progress of the Tomen Medium-term Management Plan, which includes reduction of Tomen's total assets. At the same time, Tomen maintains its roles for Eurus Energy's further business expansion in the global renewal energy business field. |
| Tomen's holding shares in Eurus Energy will change as follows: |
| (1) | Number of Tomen's holding shares before the transaction: 6,176 shares (holding shares 50%) |
| (2) | Number of shares which Tomen will sell to TEPCO: 1,235 shares |
| (3) | Number of Tomen's holding shares after the transaction: 4,941 shares (holding shares 40%) |
|
| 5. | Tomen's business projection for the fiscal year ending March 31, 2004 |
| The above transaction will bring a gain of approximately 2.2 billion yen from the sale on a consolidated basis and a gain of 2.5 billion yen from the sale on a non-consolidated basis for Tomen's fiscal year ending March 31, 2004. However, the business projection for the year ending March 31, 2004, which was announced on November 7, 2003, remains unchanged, as effects from other business factors on Tomen's financial results of the fiscal year ending March 31, 2004 have not been estimated. |
| In addition, Tomen and TEPCO plan an independent public offering (IPO) of their holding shares in Eurus Energy in the year ending March 31, 2006, and both companies are working together to begin preparation for the IPO. |
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