| Toshiba to Sell Part of Shares of Toshiba Finance Corporation|
18 March, 2004
TOKYO -- Toshiba Corporation today announced that it would sell part of its shares of Toshiba Finance Corporation, a Japan-based subsidiary of Toshiba, by the end of March 2004. Toshiba currently holds just over 92% of Toshiba Finance's outstanding shares, and the sale, to nine Japanese financial institutions, will dilute Toshiba's holding to just over 35%. As a result, Toshiba Finance, currently a consolidated subsidiary, will become a Toshiba affiliate company accounted by the equity method.
Toshiba Finance operates in an extremely competitive business sector. In order to enhance its ability to raise funds and reinforce its financial strength, Toshiba and Toshiba Finance concluded that closer relations and cooperation with leading financial institutions, and their active participation in Toshiba Finance, would allow Toshiba Finance to enhance the quality of its services and improve its operating vigor. While Toshiba Corporation will reduce its holding, Toshiba Finance will continue to provide financial services as the core finance company of Toshiba group.
Established in 1949 and now headquartered in Ginza, Tokyo, Toshiba Finance Corporation undertakes credit sales and credit assurance, leasing of electric and electronic machines, appliances and other movables, real-estate, factoring and other financial services. The company has a nation-wide business presence, is capitalized at 3,910 million yen, and has 978 employees as of March 31, 2003. In the fiscal year ended March 2003, Toshiba Finance had a turnover of 458,398 million yen and net income of 649 million yen.
Toshiba currently holds 36,189,696 shares in Toshiba Finance, representing 92.31% of the company's outstanding stock, with the remaining 7.69% held by Toshiba Group companies. After this sale, Toshiba will buy out shares of other Toshiba Group companies. As a result, Toshiba's holding in Toshiba Finance will become 35.00%. Share transfer agreements with the purchasers were concluded today, with March 26 as the planning delivery date of shares.
The investors in Toshiba Finance Corporation and their holdings after the purchase of shares are as follow
The impact of the sale has already been incorporated into the consolidated forecast that Toshiba announced on January 29, 2004.
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