TOKUYAMA CORPORATION November 27, 2015 Company name: Tokuyama Corporation Representative name: Hiroshi Yokota, President and Representative Director (Code No. 4043, First Section TSE) Contact: Taro Kobayashi, General Manager,
Corporate Communications & Investor Relations Dept.
TEL: +81-3-6205-4832
Tokuyama Corporation (hereafter referred to as 'Tokuyama' or 'the Company') today announced its decision to transfer a certain non-current asset in accordance with a resolution of the Board of Directors at a meeting held on November 27, 2015. Brief details are presented as follows.
Background of the transfer
Tokuyama has identified efforts to rebuild the Company's financial platform as a priority issue under its Medium-Term Management Plan 2017, which was put in place in July 2015 and covers the three-year period from fiscal 2015, the fiscal year ending March 31, 2016, to fiscal 2017, the fiscal year ending March 31, 2018. As part of its initiatives toward rebuilding the financial platform, the Company has decided to transfer a certain non-current asset in order to ensure the effective use of management resources and to improve its financial position.
Overview of an asset to be transferred
Asset Name
Location / Overview of the Asset
Transferee
Current State
Tokuyama Bldg.
4-5, Nishi-shimbashi 1-chome, Minato-ku, Tokyo
Land area: 774.23 m2
Total floor space: 3,906.53 m2
Not disclosed.
Real estate for own use
The gain on the transfer of the aforementioned asset is estimated at approximately ¥4.0 billion after deducting the book value of the asset and expenses related to the transfer from the transfer price.
In accordance with the agreement entered into with the transferee, we refrain from disclosing the transfer price and book value of the asset. The transfer price of the asset is based on a valid evaluation and is deemed appropriate.
While the transferee is a corporation in Japan, Tokuyama does not maintain any capital, personal, or transactional ties with this corporation. At the same time, there are no related-party items of any substance to be reported. Tokuyama also confirmed that the transferee is not a part of any antisocial forces.
Transfer schedule
(1) Date of Board Resolution
November 27, 2015
(2) Date of Contract Conclusion
December 3, 2015 (planned)
(3) Date of Property Transfer
March 31, 2016 (planned)
Extraordinary income
Tokuyama plans to post gain on sales of a non-current asset as extraordinary income of approximately ¥4.0 billion in its consolidated financial statements for the fourth quarter of the fiscal year ending March 31, 2016 in line with the transfer of the aforementioned non-current asset.
Earnings Outlook
The Company is currently taking steps to review its consolidated and non-consolidated performance forecasts for the full fiscal year ending March 31, 2016. Details will be disclosed in a timely manner should any revision to performance forecasts arise.
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