Statement re
June 03 2003 - 11:01AM
UK Regulatory
BW20030603002070 20030603T140024Z UTC
( BW)(SUMITOMO-MITSUI-BNKG)(SBK) Statement re: The Bank of Kansai to Acquire The Kansai Sawayaka Bank's Common Stock
Business Editors
UK REGULATORY NEWS
TOKYO--(BUSINESS WIRE)--June 3, 2003--
The Bank of Kansai to Acquire The Kansai Sawayaka Bank's Common Stock
Tokyo, June 3, 2003 --- Sumitomo Mitsui Financial Group, Inc. ("SMFG")
announced today that The Bank of Kansai, Ltd., its consolidated
subsidiary, has resolved at today's meeting of the Board of Directors
to acquire 80% of the outstanding common shares of The Kansai Sawayaka
Bank, Limited (see the attached material), subject to the approval of
the authorities. The acquisition will make The Kansai Sawayaka Bank a
consolidated subsidiary of SMFG.
SMFG's earnings estimates, which were announced on May 26, 2003, will
not be revised.
Note: SMFG does not have capital, personnel or business relationship
with The Kansai Sawayaka Bank Limited or Nippon Investment
Partners Limited Partnership from whom The Bank of Kansai will
acquire the shares.
Acquisition of The Kansai Sawayaka Bank's Common Stock
Tokyo, June 3, 2003 --- The Bank of Kansai, Ltd. announced today that
the Board of Directors has resolved to acquire 80% of the outstanding
common shares of The Kansai Sawayaka Bank, Limited, subject to the
approval of the authorities.
1. Outline of The Kansai Sawayaka Bank
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Corporate name The Kansai Sawayaka Bank, Limited
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Address 2-37, Tosabori 1-chome, Nishi-ku, Osaka
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Representative Shuichi Takahashi
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Date of establishment September 26, 2000
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Capital stock 32,083 million yen
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Main shareholders Name Address No. of As % of total
shares outstanding
shares
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Common stock Nippon Investment Delaware, U.S.A. 480,000 99.6%
Partners Limited
Partnership
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Preferred stock Resolution and 46-1, Honmachi 40,000 100.0%
Collection Corp. 2-chome, Nakano-ku,
Tokyo
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Business Banking
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Relationship with Capital None
The Bank of Kansai
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Personnel None
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Business None
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No. of employees 812
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Earnings & Financial FY2001 FY2002
Situation (ended March 2002) (ended March 2003)
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Operating income 27,649 million yen ( 84.9%) 27,579 million yen ( 84.7%)
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Operating profit 9,964 million yen (211.5%) 10,701 million yen (227.2%)
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Net income 5,358 million yen (255.1%) 5,826 million yen (277.4%)
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Total assets 817,360 million yen ( 63.7%) 778,280 million yen ( 60.7%)
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Stockholders' equity 37,843 million yen ( 86.9%) 43,539 million yen ( 99.9%)
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( ): As % of The Bank of Kansai's FY2002 figures
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Note: Unless otherwise stipulated by law, preferred stock carries no voting rights at stockholders meetings.
2. Number of outstanding common shares to be purchased by The Bank of Kansai
(a) No. of shares held before acquisition: None
(b) No. of shares to be acquired: 384,000 shares (80% of outstanding common
shares); acquisition price 38.4 billion yen
(c) No. of shares held after acquisition: 384,000 shares (80% of outstanding common
shares)
1.
3. Outline of the company selling the shares
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Corporate name Nippon Investment Partners Limited Partnership
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Address Delaware, U.S.A.
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Representative Wilbur L. Ross, Jr.
Chairman and Managing Member of Nippon Sawayaka Associates LLC, which
is the sole General Partner of Nippon Investment Partners Limited
Partnership
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Date of establishment July 2000
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Relationship with Capital None
The Bank of Kansai
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Personnel None
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Business None
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4. Acquisition method
Sale and purchase of shares
5. Acquisition reasons
The Bank of Kansai and The Kansai Sawayaka Bank are scheduled to
merge on February 1, 2004, subject to the approval of their
shareholders and the authorities. To facilitate the integration of
the two banks at the management level, The Bank of Kansai will
purchase 80% of the outstanding common shares of The Kansai
Sawayaka Bank prior to their merger.
6. Acquisition schedule
June 3, 2003 (Tuesday): Resolution of the Board of Directors
Signing of Share Transfer Agreement
July 1, 2003 (Wednesday): Transfer of shares (slated)
February 1, 2004 (Sunday): Merger (slated)
7. Futures earnings impact
The Bank of Kansai will announce the consolidated and
nonconsolidated income projections for FY2003 as soon as the
figures have been estimated.
The two bank's FY2002 earnings results, which were announced on
May 26, 2003, are as follows:
(Millions of yen)
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Bank of Kansai Kansai Sawayaka Bank Total
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Operating income 33,500 28,040 61,540
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Operating profit 5,500 11,460 16,960
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Net income 2,300 6,430 8,730
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Banking profit 12,000 3,650 15,650
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Core banking profit 12,000 3,650 15,650
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Short Name: Sumitomo Mitsui Bnkg.
Category Code: STR
Sequence Number: 00005411
Time of Receipt (offset from UTC): 20030603T145549+0100
--30--ne/uk*
CONTACT: Sumitomo Mitsui Bnkg
KEYWORD: UNITED KINGDOM JAPAN INTERNATIONAL EUROPE ASIA PACIFIC
INDUSTRY KEYWORD: BANKING
SOURCE: Sumitomo Mitsui Bnkg
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