FOR IMMEDIATE RELEASE December 18, 2014
Dentsu Inc. (Tokyo: 4324; ISIN: JP3551520004; President & CEO: Tadashi Ishii; Head Office: Tokyo; Capital: 74,609.81 million yen) today convened a meeting of its Board of Directors at its Head Office in Tokyo at which it resolved the transfer of four non-current asset properties owned by Dentsu Inc. and its subsidiary Dentsu Works Inc.
1. Reason for the transferTo effectively utilize management resources and strengthen the financial structure through the reduction of assets owned by the Dentsu Group
2. Details of non-current assetsDetails and locations of non-current assets | Current status |
Dentsu Tsukiji Building 1-1112-1 (plus some adjacent land), Tsukiji, Chuo-ku, Tokyo Land (3,258.23 m3) and building | Real estate owned by Dentsu Inc. for rent |
Dentsu Tsukiji Building 2 1-714-4, Tsukiji, Chuo-ku, Tokyo Land (715.62 m3) and building | Real estate owned by Dentsu Inc. for rent |
Dentsu Tsukiji Building 3 1-810-2, Tsukiji, Chuo-ku, Tokyo Land (1,466.22 m3) and building | Real estate owned by Dentsu Inc. for rent |
Dentsu Kosan Building 2 1-714-1 (plus some adjacent land), Tsukiji, Chuo-ku, Tokyo Land (1,096.28 m3) and building | Real estate owned by Dentsu Works Inc. for rent |
A competitive bidding process was used for the transfer of the non-current assets, and in the interest of fairness the confidentiality of the parties involved must be maintained. The transfer price, book value and other details will therefore not be disclosed.
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The transferee is a general Japanese corporation. As stated in the previous paragraph, the confidentiality of the parties involved must be maintained. Further details will therefore not be disclosed.
4. Transfer schedule(1) Date of Board of Directors' resolution | December 18, 2014 |
(2) Contract signing date | December 24, 2014 (tentative) |
(3) Property transfer date | December 24, 2014 (tentative) |
Extraordinary income of approximately 24.1 billion yen on a consolidated basis and approximately 19.8 billion yen on a non-consolidated basis (Japanese GAAP) resulting from this transaction is expected to be realized in the third quarter of the fiscal year ending March
2015 when the transfer is completed. On an IFRS basis, a gain of approximately 29.4 billion yen on the sale of non-current assets is expected to be realized.
Such impact resulting from this transaction on the forecast of financial results for the fiscal year ending March 31, 2015 is currently under examination. A further announcement will be made as soon as the impact has been determined.
Company name | Dentsu Works Inc. |
Location | 2-16-7, Ginza, Chuo-ku, Tokyo |
Representative | Hiroshi Nakahara, President & CEO |
Line of business | Facility management (real estate, building management, office relocation and design), HR solutions, building environment consulting, insurance |
Capital | 2,370 million yen |
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Contact: Shusaku Kannan
Senior Manager,
Corporate Communications Division
Telephone: (813) 6216-8042
E-mail: s.kannan@dentsu.co.jp
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