Konami Grp Corp Regulatory News (KNM)

29 Feb 2008 11:20

Konami Corporation29 February 2008 FOR IMMEDIATE RELEASEFebruary 29, 2008 KONAMI CORPORATIONKagemasa KozukiRepresentative Director and CEOStock code number: 9766 at TSE1 Contact: Noriaki YamaguchiRepresentative Director and CFOTel: +81-3-5771-0222 Announcement on Share Acquisition of Sportsplex Japan KONAMI CORPORATION (hereinafter referred to as "Konami") hereby announces thatpursuant to resolutions adopted at meeting of the Board of Directors of Konamiheld on February 28, 2008, Konami has decided to acquire the shares ofSportsplex Japan (hereinafter referred to as "SPJ") and make SPJ its subsidiary. 1. Objectives of Share Acquisition SPJ operates 13 fitness clubs in the Tokyo metropolitan area. Konami has decidedto acquire SPJ shares primarily for the following reasons. (1) Konami aims to further improve its facility-related services by providingits operating know-how, its wide variety of exercise programs and itsself-developed health-related machines to the facilities operated by SPJ. (2) Konami aims to expand its market share by combining SPJ's facilities, whichare located in favorable areas, and high-quality services with Konami'stechnological strengths and service capabilities. 2. Outline of Target Company (Sportsplex Japan) (1) Registered name Sportsplex Japan (2) Representative Makoto Misu, CEO (3) Head office location 4-1-27 Akasaka, Minato-ku, Tokyo (4) Date of incorporation April 19, 2000 (5) Main business Operation of fitness clubs and instruction at fitness clubs Consultation on management and operation of sports clubs (6) Fiscal year end March 31 (7) Number of employees 138 employees (As of September 30, 2007) (8) Major business establishments 13 fitness clubs located at the Tokyo metropolitan area (9) Paid in Capital 710 million yen (10) Total shares outstanding 36,316 shares (11) Ownership ratio of principal shareholders (As of September 30, 2007) Name of shareholder Ownership ratio(%)Tokyo Electric Power Company, Inc. 86.46%Misu, Makoto 4.91%Employees' stock ownership program in SPJ 3.50% (12) Financial results for the two most recent fiscal years (Unit: millions ofyen)Fiscal Year Ended March, 2006 March, 2007Net revenues 5,312 5,858Gross profit 1,124 848Operating income 8 (170)Ordinary income 2 (186)Net income (16) (236)Total asset 5,649 6,455Total stockholders' equity 1,503 1,268Dividend per share - - 3. The Counterparty the Shares are Acquired from (1) Registered name Tokyo Electric Power Company, Inc.(2) Representative Tsunehisa Katsumata, President(3) Head office location 1-1-3 Uchisaiwai-cho, Chiyoda-ku, Tokyo(4) Main business Integrated energy services(5) Relationship to Konami N/A 4. Number of shares owned around the time of the share acquisition (1) Ownership of shares before the acquisition: 0 shares (with no voting rights, ownership ratio 0%) (2) Number of shares acquired: 31,400 shares (with 31,400 voting rights) (3) Ownership of shares after the acquisition: 31,400 shares (with 31,400 voting rights, ownership ratio 86.46%) 5. Schedule of Acquisition February 28, 2008: Date of signing share acquisition agreement March 6, 2008 (planned): Date of share acquisition 6. Future Forecast after the Share Acquisition Konami expects that the effect of this share acquisition to its consolidatedfinancial results for the current fiscal year will be immaterial. This information is provided by RNS The company news service from the London Stock Exchange