ITOCHU Acquires Additional Shares in Descente
December 21, 2009
ITOCHU Corporation (“ITOCHU”) is pleased to announce that it is acquiring additional shares in Descente Ltd. (“Descente”) to facilitate the continued development of both companies.
Acquisition of additional shares
ITOCHU acquired 1,168,000 shares in Descente on December 18, 2009 in addition to 17,737,000 shares (23.1% of the number of shares outstanding, or 23.7% of the number of voting rights, as of the end of March 2009) it had held prior to the acquisition. As a result, ITOCHU holds 18,905,000 shares (24.6% of the shares outstanding, or 25.2% of the voting rights, as of the end of March 2009).
ITOCHU plans to acquire additional shares in Descente until it holds 25.0% of the shares outstanding of Descente, and expects that it will achieve this target by mid-June 2010. ITOCHU does not plan to acquire any additional shares thereafter.
1.Purpose of acquisition of additional shares
ITOCHU has established close ties with Descent over many years through the supply of commercial goods by ITOCHU to Descente based on a brand business alliance. ITOCHU made Descent an equity method affiliate in May 2008 and formed a capital and business alliance. The acquisition of additional shares is intended to enable strategic initiatives, including the development of strategies overseas and support in distribution and production, and to establish a stronger partnership.
2.Profile of Descente
|Business name||Descente Ltd.|
|Main business||Manufacture and sale of sportswear and related goods|
|Established||March 18, 1949|
|Head office address||1-11-3 Dogashiba, Tennoji-ku, Osaka|
|Representative||President Etsuro Nakanishi|
|Capital||￥3,846 million (as of September 30, 2009)|
|Number of employees||731 (as of September 30, 2009)|
|Consolidated sales||￥77,049 million (fiscal year ended March 2009)|